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OVERNIGHT MONEY: Another 'fiscal cliff' proposal dismissed
TUESDAY'S BIG STORY:
Traipsing along the cliff's edge: Another day, another "fiscal cliff" proposal rejected.
House Republican leaders on Monday sent their counteroffer to the White House proposing a 10-year plan with $2.2 trillion in combined spending cuts and entitlement reforms and $800 billion in new tax revenue.
The plan called for increasing the eligibility age for Medicare and lowering cost-of-living hikes for Social Security benefits.
It was dead on arrival at the White House.
The proposal from House Speaker John Boehner (R-Ohio) came in response to President Obama's opening offer last week to hike taxes by $1.6 trillion over the coming decade but mostly keep Medicare and Social Security out of the budget cut fray.
Obama's offer fared just about as well among Republicans.
Still, Boehner called the GOP proposal a "credible plan." while the White House swiftly dismissed it by saying it failed to "meet the test of balance," didn't include anything new and wasn't serious.
"While the president is willing to compromise to get a significant, balanced deal and believes that compromise is readily available to Congress, he is not willing to compromise on the principles of fairness and balance that include asking the wealthiest to pay higher rates," White House communications director Dan Pfeiffer said in a statement.
From here, Obama is set to meet with some of the nation’s governors on Tuesday, and will follow that up with a Wednesday speech before the Business Roundtable, which represents the leaders of many of the nation’s largest companies who have been active participants in trying to help forge a deal.
Earlier in the day, the Obama administration and Democratic leaders suggested that Republicans roll out their plan.
Senate Majority Leader Harry Reid (D-Nev.) was one of those Democrats who said Republicans are “doing it wrong” when it comes to negotiating a deal.
Meanwhile, some business groups suggested punting the debt deal to the next Congress.
Others suggested the kind of sequester where lawmakers lock themselves into a room and don't leave until they have a deal.
Former Clinton budget director Alice Rivlin said it is time for action instead of posturing.
“They need to get off the Sunday shows,” Rivlin said.
Regardless, time is running short on reaching a deal on expiring tax breaks and scheduled spending cuts.
Without a solution, economists argue that the already fragile economy could land back into a recession more than three years after the last one officially ended.
WHAT ELSE TO WATCH FOR
Let's talk about debt: The Campaign to Fix the Debt is holding a roundtable discussion on the importance of tax and healthcare reform to address the national debt and step back from the edge of the fiscal cliff. The event includes economists, chief executives, lawmakers and various think tank heads. Leading off the morning is Sen. Rob Portman (R-Ohio), the White House's Gene Sperling, director of the National Economic Council, and Senate Finance Chairman Max Baucus (D-Mont.).
Financial framework: Federal Reserve Board of Governors member Daniel Tarullo headlines a Brookings Institution chat about how to structure the financial industry to enhance economic growth and stability. The discussion includes financial industry experts, government officials and academics.
WHAT YOU MIGHT HAVE MISSED
— Gov. Cuomo to press Boehner, White House for more Sandy disaster funding
— Manufacturers press for passage of tariff suspension bill
— Schweikert dropped from Financial Services panel
— Majority of Senate Democrats back federal unemployment extension
— Democrats: Corzine not only to blame for MF Global collapse
— Manufacturing sector slows to three-year low
Catch us on Twitter: @VickoftheHill, @peteschroeder, @elwasson and @berniebecker3
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