• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Boehner Responds To Obama's "La-La-Land" Offer

Tyler Durden's picture


There is little detail (more to come) but Boehner's office has just released his rebuttal to Obama's so-called 'un-serious' offer. These numbers do not appear like any change - just as Obama's was no change - so much for compromise. It seems politicians now have zero-beta for the algos - who have given up now the month-end is over...


Full letter below:

December 3, 2012

The President
The White House
1600 Pennsylvania Avenue, Northwest
Washington, DC 20500

Dear Mr. President,

After a status quo election in which both you and the Republican majority in the House were re-elected, the American people rightly expect both parties to come together on a fair middle ground and address the nation’s most pressing challenges. 

To that end, shortly after the election, we presented you with a balanced framework for averting the fiscal cliff by coupling spending cuts and reforms with new tax revenue.  We then welcomed Secretary Geithner to the Capitol on November 29 with every expectation that he would lay out a similarly reasonable path.

Regrettably, the proposal he outlined on behalf of your Administration contains very little in the way of common ground.   The proposal calls for $1.6 trillion in new tax revenue, twice the amount you supported during the campaign.  The proposal also includes four times as much tax revenue as spending cuts, in stark contrast to the “balanced approach” on which you campaigned.  While administration officials are claiming that this proposal contains 2.5 dollars of spending cuts for each dollar in new revenue, counting as part of this ratio previously enacted savings – as if these were new spending reductions – only confuses the public debate.  What’s worse, the modest spending cuts in this offer are cancelled out by the additional ‘stimulus’ measures the Administration is requesting.  And, this proposal would remove any and all limits on federal borrowing. 

We cannot in good conscience agree to this approach, which is neither balanced nor realistic.  If we were to take your Administration’s proposal at face value, then we would counter with the House-passed Budget Resolution.  It assumes an overhaul of our tax code with revenue remaining at historically normal levels and proposes structural reforms to preserve and protect the Nation's entitlement programs, ensuring they are sustainable for the long-term rather than continuing to grow out of control.  Some of its key reforms include:

  • The House-passed Budget Resolution assumes enactment of structural Medicare reform that offers future beneficiaries guaranteed coverage options, including a traditional fee-for-service Medicare plan.  This proposal is based on recent bipartisan efforts and would provide greater support for the poor and the sick and less support for the wealthy.  We achieve these reforms in Medicare without affecting current seniors or those nearing retirement.  This would slow the projected explosive spending growth in this program and eventually maintain Medicare spending as a share of the economy at 4.75 percent, thus saving the program for future generations. 
  • The House-passed Budget Resolution reforms Medicaid and provides states with greater flexibility to better deliver health security to beneficiaries, saving the federal government nearly $800 billion over 10 years.
  • Separate from savings in our proposal for the 2010 health care law, the House-passed Budget Resolution envisions hundreds of billions in savings in other mandatory spending, including reforms to Federal employee compensation and the Supplemental Nutrition Assistance Program.

These reforms are, in our view, absolutely essential to addressing the true drivers of our debt, and we will continue to support and advance them.  At the same time, mindful of the status quo election and past exchanges on these questions, we recognize it would be counterproductive to publicly or privately propose entitlement reforms that you and the leaders of your party appear unwilling to support in the near-term.

With the fiscal cliff nearing, our priority remains finding a reasonable solution that can pass both the House and the Senate, and be signed into law in the next couple of weeks.  The best way to do this is by learning from and building on the bipartisan discussions that have occurred during this Congress, including the Biden Group, the Joint Select Committee, and our negotiations leading up to the Budget Control Act.

For instance, on November 1 of last year, Erskine Bowles, the co-chair of your debt commission, presented the Joint Select Committee with a middle ground approach that garnered praise from many fiscal watchdogs and nonpartisan experts.  He recommended that both parties agree to a balanced package that includes significant spending cuts as well as $800 billion in new revenue.

Notably, the new revenue in the Bowles plan would not be achieved through higher tax rates, which we continue to oppose and will not agree to in order to protect small businesses and our economy.  Instead, new revenue would be generated through pro-growth tax reform that closes special-interest loopholes and deductions while lowering rates.  On the spending side, the Bowles recommendation would cut more than $900 billion in mandatory spending and another $300 billion in discretionary spending.  These cuts would be over and above the spending reductions enacted in the Budget Control Act.

This is by no means an adequate long-term solution, as resolving our long-term fiscal crisis will require fundamental entitlement reform.  Indeed, the Bowles plan is exactly the kind of imperfect, but fair middle ground that allows us to avert the fiscal cliff without hurting our economy and destroying jobs.  We believe it warrants immediate consideration.

If you are agreeable to this framework, we are ready and eager to begin discussions about how to structure these reforms so that the American people can be confident that these targets will be reached. 

Again, the American people expect their leaders to find fair middle ground to address the nation’s most pressing challenges.  To achieve that outcome, we respectfully request that you respond to this letter in a timely fashion and hope that you will refrain from any further action that would undermine good-faith efforts to reach a reasonable and equitable agreement in this critical matter.


John Boehner, Speaker
Eric Cantor, Majority Leader
Kevin McCarthy, Majority Whip
Cathy McMorris Rodgers, Republican Conference Chairman
Dave Camp, Chairman, Committee on Ways and Means
Paul Ryan, Committee on the Budget
Fred Upton, Committee on Energy & Commerce

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 12/03/2012 - 16:10 | 3030538 slaughterer
slaughterer's picture

"Republican plan": where does that get us?  In Depression times 2?

Mon, 12/03/2012 - 16:23 | 3030591 Arthor Bearing
Arthor Bearing's picture

Your confused opinion stems from a mindset of fear and confusion, and you run to big daddy democrat to offer you shelter and care.

Default, bitchez. Debt write-downs or a jubilee, constitutional amendment limiting debt financing for government programs, and we start over.

Mon, 12/03/2012 - 16:34 | 3030633 Tortfeasor
Tortfeasor's picture

Debt writedowns/jubilee will eliminate our having to worry about debt financing in the future. No one will loan to us, a la Russia.

And if that ever happened, praise the Lord, and pass the ammunition.

Mon, 12/03/2012 - 16:44 | 3030660 Boris Alatovkrap
Boris Alatovkrap's picture

Russia is to lending America?! No chance - Russia is not for pot to piss over!

Mon, 12/03/2012 - 16:45 | 3030673 TheFourthStooge-ing
TheFourthStooge-ing's picture

Bhoaner Stiff In Opposing Obama

Bhoaner Pops President's Plan

Mon, 12/03/2012 - 16:57 | 3030690 akak
akak's picture

Bhoner's Plan Still Fluid.

Bhoner Denies "Premature Release" of His Budget Plan.

Bhoner:  Budget Plan Details Still to Come.

Bhoner Feeling 'Spunky' About Federal Budget Negociations.

Bhoner Claims Budgetary Wrangling Becoming "Sticky".

Mon, 12/03/2012 - 17:10 | 3030719 TheFourthStooge-ing
TheFourthStooge-ing's picture

President Jerks Bhoaner Around, Claims House Speaker

Mon, 12/03/2012 - 17:19 | 3030774 akak
akak's picture

Flaccid Bhoner, Feeling Sleepy, Tells Obama He Will Call Him In The Morning.

Mon, 12/03/2012 - 17:51 | 3030893 redpill
redpill's picture

- Bhoner says Obama plan comes up short

- Analysts say Obama, Bhoner plans not in the same vein

- Bhoner says negotiations likely to climax by year end

Tue, 12/04/2012 - 00:06 | 3031643 narapoiddyslexia
narapoiddyslexia's picture

Nothing is serious that starts with the phrase, "After a status quo election..."

Mon, 12/03/2012 - 16:45 | 3030675 Arthor Bearing
Arthor Bearing's picture

Few besides the federal reserve are buying US debt at 0% interest anyway

Mon, 12/03/2012 - 16:52 | 3030693 walküre
walküre's picture


It's like they didn't get the memo. The country voted for the other plan. Tax the rich, raise real revenues and get on with life. If 1% of the population goes into a no-spending, no consuming protest, I could care less. 99% would probably tend to agree.

There's only so much meat one guy can eat per day, only so many cars one guy can drive and only so many pants one guy can wear.

Redistribution by free will or by force. Either way needs to happen.

Mon, 12/03/2012 - 17:09 | 3030747 The Gooch
The Gooch's picture

I've got an "extra" steak, pair of pants and Chevy Volt for you!

(right over there in that hole)

Mon, 12/03/2012 - 17:11 | 3030760 walküre
walküre's picture

Why stop there? Is that all you got? Who is paying your bills?

Mon, 12/03/2012 - 17:47 | 3030882 The Gooch
The Gooch's picture

I do have a shovel.

Jump in the hole and I'll tell you the rest.



Mon, 12/03/2012 - 17:12 | 3030764 Ookspay
Ookspay's picture

Employing politicians to assist in your theft is still theft.

Mon, 12/03/2012 - 17:15 | 3030773 walküre
walküre's picture

There's no honor among thieves. Better you get with the program.

Mon, 12/03/2012 - 17:26 | 3030810 knukles
knukles's picture

Talkin' about only so much meat can be eaten, I still got dibs on Old Lady Papandreou and her $700MM biggies.

Mon, 12/03/2012 - 16:10 | 3030539 LawsofPhysics
LawsofPhysics's picture

Staged "opposition".  Their masters are very much the same.  fuck off boehner.

Mon, 12/03/2012 - 16:16 | 3030560 Dr. Richard Head
Dr. Richard Head's picture

No shit.  Here is the plan that will come to fruition after much made-for-TV hand-wringing -

1. ALL Tax cuts extended.

2. No cuts to even base-line bidgeting.

3. Debt-ceiling increase.

4. We get fucked as borrowed (if any REAL buyers of US debt exist) and printed money sucks us all dry.

Same old game, rinse, repeat.


Mon, 12/03/2012 - 16:18 | 3030573 john39
john39's picture

the overlords and their corporations want some of these taxers... for example the lower ceiling on the estate tax...  the family farmer is an enemy to the NWO, and must be eliminated.

Mon, 12/03/2012 - 16:21 | 3030583 LawsofPhysics
LawsofPhysics's picture

BINGO!!!!  Far too much real wealth and assets in their possession.

Mon, 12/03/2012 - 17:40 | 3030861 chubbar
chubbar's picture

I've never understood why these farming families don't just use a Sub S or FLP to shelter their assets? They can gift shares to their kids as they grow up and still maintain control through special voting shares, etc. Macho Man or one of the other law dudes could speak to this issue with more authority but it can be done and reasonably inexpensive as well. Plus it gives some added liability protection as well. Use the law against these assholes.

Mon, 12/03/2012 - 17:02 | 3030710 youngman
youngman's picture

Think about it..when the farmer dies his estate has to sell to pay taxes...who is there to buy....why the bankers and corportions with the cash....in time...farmers out....serfs in...

Mon, 12/03/2012 - 16:13 | 3030545 Clueless Economist
Clueless Economist's picture

Speaker Boehner's plan is unworkable.

We need to raise taxes by $2 trillion AND increase spending by an additional $10 Trillion.

This will get the economy moving, and reduce the national debt at the same time. 

I the great and all-knowing KRUGMAN have spoken.

Mon, 12/03/2012 - 16:15 | 3030557 DoChenRollingBearing
DoChenRollingBearing's picture

Roar Forward, Soviet!

Mon, 12/03/2012 - 16:24 | 3030597 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

More the better the corporitist?

Mon, 12/03/2012 - 16:16 | 3030558 i_call_you_my_base
i_call_you_my_base's picture

In short: F off.

Mon, 12/03/2012 - 16:16 | 3030561 yabyum
yabyum's picture

Speaker Boehner, the 2% have had these rates since bush2...WHERE ARE THE FUCKING JOBS?

Mon, 12/03/2012 - 16:26 | 3030582 Everybodys All ...
Everybodys All American's picture

in Chindia. Tariffs are needed. Can we agree on that at least?

Actually we all have had the tax cut.

Mon, 12/03/2012 - 16:44 | 3030662 CrashisOptimistic
CrashisOptimistic's picture

In the abandoned home building complexes.  Taxes had nothing to do with that, either too high or too low.

Now, you CAN make it worse.  You just have to decide what is likely to make it worse -- taking money out of the economy, or not taking money out of the economy.  Taxes do that, you know.  Decrease in personal consumption derives from taxing money away.

Scope out the GDP equation.  Cutting government spending is going to do the same thing.

And that's the moral of the story.  Pain must happen.  These things have to happen, and it will smash GDp when it does, which of course will reduce tax revs, whether you increase rates or not.

Mon, 12/03/2012 - 16:17 | 3030562 fsudirectory
fsudirectory's picture

I'm confused why all these news stories keep throwing out this line: "There is little detail (more to come) but Boehner's office"  Aren't details + Boehner (or GOP) an oxymoron?

Mon, 12/03/2012 - 16:21 | 3030584 Possible Impact
Possible Impact's picture

Everyone knows you pin details on the donkey, not the elephant!

Mon, 12/03/2012 - 16:31 | 3030621 Dr. Richard Head
Dr. Richard Head's picture

I believe both sides of the aisle have taken notes on how Greece handled this and are following in their footsteps.  Look how well it worked for Greece?

Mon, 12/03/2012 - 16:21 | 3030586 Seasmoke
Seasmoke's picture

I look forward to them sucking each others for a job well done.

Mon, 12/03/2012 - 16:22 | 3030589 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They are getting orders from WS to keep a lid on inflation by talking it down.  As soon as Bernanke's tens of trillions of dollars come home to roost inflation will end the American Dream of suburbs and fast cars.  That day will come soon enough, but until then, Reid and Boehner want to day trade the ups and downs.

Mon, 12/03/2012 - 16:25 | 3030598 JLee2027
JLee2027's picture

Who is more hated? Bohner or Obama?

Mon, 12/03/2012 - 16:26 | 3030605 The Gooch
The Gooch's picture


Mon, 12/03/2012 - 16:32 | 3030624 NotApplicable
NotApplicable's picture

How can anyone hate puppets? They're so cute!

Mon, 12/03/2012 - 16:35 | 3030635 akak
akak's picture

Yeah, "cute" like ...... clowns.

Mon, 12/03/2012 - 16:44 | 3030665 azzhatter
azzhatter's picture

Equal opportunity hater of both. Hope they die together in a fire

Mon, 12/03/2012 - 16:26 | 3030603 semperfi
semperfi's picture

Kenyan Thug and his Democrat Wealth Raiders want the cliff -its their liberal/socialist/communist big-tax-hike-wealth-grab they have wet dreams about.

Mon, 12/03/2012 - 16:32 | 3030630 metaforge
metaforge's picture

...as they continue to pretend that they are really running the show.  Where's my popcorn?  This is some good theatre.

Mon, 12/03/2012 - 16:33 | 3030631 The Axe
The Axe's picture

JUNKER    gone!!!!


Mon, 12/03/2012 - 16:37 | 3030642 youngman
youngman's picture

The Republicans will lose...but that does not mean they are not right....the press will trash them as will the Obama...and the Obamaphoners will fall for it...and next year revenues will drop...big....and bigger deficits...more unemployment...more on welfare...remember Obamacare kicks in too...and then Obama will want more......I think the 401K´s will come into play next year.....and assets....tax the assets....also foreign holders of our paper will start to send it back...first in waves..then in tsunami´s...oh and a downgrade or two is in play also..Its going to be a very tough 3-4 years....can´t change it now...

Mon, 12/03/2012 - 16:37 | 3030643 TonyCoitus
TonyCoitus's picture

Coming to a theatre near you:

Super Committee Part Deax

Free popcorn!

Mon, 12/03/2012 - 16:44 | 3030663 Joe moneybags
Joe moneybags's picture

It will be fun to watch Obama cave on his insistence of raising the tax rates for those above $250K.  He will settle for some loophole closures, and some token rate raise for those making above $1 mil.

Mon, 12/03/2012 - 16:46 | 3030678 azzhatter
azzhatter's picture

I think Odufus wants to take us over and blame it on the evil repuglicans. Score some political points among the brain dead and then he can offer the Obama tax cuts. You know he hates the Bush tax cuts if only for their name

Mon, 12/03/2012 - 16:48 | 3030689 HurricaneSeason
HurricaneSeason's picture

I've been reading 20% chance of bouncing down the fiscal cliff. I'd say more like 75%. This is just the first fiscal cliff and we still have the debt ceiling yet, too. Smoke em if ya got em.

Mon, 12/03/2012 - 16:55 | 3030701 CrashisOptimistic
CrashisOptimistic's picture

It somehow has not occurred to people that the fiscal cliff is resolving all the issues so that we have another 1.2T deficit next year -- or rather this FY, which started 1 Oct.

"Fixing the fiscal cliff" might be letting all the cuts and tax increases happen.  That would instantly take the deficit to about, oh, 850B, down from 1.2T.  Popular numbers are 600 B, but when the GDP contracts we'll lose tax revs so the correct number is likely 850B.

Do NOT follow this link or you will be banned from the site!