Republicans are on the move to squeeze more concessions from Obama on taxes through political maneuvering in the bid to ensure that U.S Economy doesn’t grow high in the coming year with effect from January 1, 2013.
Most likely, the U.S president reached the agreement with John Boehner, the House of Representatives speaker last Monday after an intensive meeting with him. The republicans were able to convince the democrats towards agreeing to raise taxes for those making more than $1 million per annum. This republican proposal was known as ‘Plan B’. The move was never opposed by any party.
The white House spokesman, Jay Carney told journalists last Tuesday that Obama is making great efforts in reaching a compromise with the republicans. The president promises to limit tax increases to incomes that are more than $400, 000 per household. Boehner plans to move the ‘Plan B’ bill to the floor of the house this week. The house is dominated by the republicans while the senate is controlled by the democrats.
Economists are not comfortable with this move, because it may trigger another recession if left unchecked. Efforts by some conservative economic analysts since last Tuesday seem to fail on deaf ears. Analysts are of the view that Boehner and Obama may reach an agreement at $500,000 or close to that. A key committee chairman Darrell Issa says his fellow house republicans are in full support of the speaker. In his view, nobody says ‘I don’t support the speaker’.
After his re-election last month, there are great supports in U.S for Obama to raise taxes on the wealthiest Americans; the move has just started officially by the lower House. For consenting to the compromising agreement, Obama will likely face unrest from fellow democrats. Obama is now ready to accept $1.2 trillion as against his former $1.4 trillion proposal.
Plans to produce spending in the government health insurance programs, Medicaid and Medicare for low-income and senior Americans respectively are yet to be discussed by both parties. The House of representative speaker is ready to give Obama one year of relative immunity over the debt ceiling, but Obama is seriously pushing for additional one year. It is gradually becoming obvious that the republicans have more to offer more than Obama could ever imagine.