White House proposes $1.6T tax increase, GOP says

By Andrew Taylor

Associated Press

POSTED: 12:07 p.m. HST, Nov 29, 2012
LAST UPDATED: 12:10 p.m. HST, Nov 29, 2012

ASSOCIATED PRESS / FEBRUARY 2012

Treasury Secretary Timothy Geithner testified on Capitol Hill in Washington before the Senate Finance Committee hearing on President Barack Obama's fiscal 2013 federal budget. GOP aides say Treasury Secretary Tim Geithner today presented an offer calling for $1.6 trillion in new tax revenue over the coming decade, extending the 2 percentage point payroll tax deduction or something comparable to it and $50 billion in stimulus spending on infrastructure projects.

WASHINGTON » Republicans familiar with a new White House offer on avoiding the so-called fiscal cliff say it looks almost exactly like President Barack Obama's budget proposal in February.

GOP aides say Treasury Secretary Tim Geithner presented an offer calling for $1.6 trillion in new tax revenue over the coming decade, extending the 2 percentage point payroll tax deduction or something comparable to it and $50 billion in stimulus spending on infrastructure projects.

The White House plan calls for $960 billion over the coming decade by increasing tax rates and taxes on investment income on upper-bracket earners and $600 billion in additional taxes.

The aides required anonymity because of the sensitivity of revealing the offer made by Geithner to top Republican lawmakers in meetings in the Capitol today.

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false wrote:

Let the redistributing continue. Funny how just about every government employee makes more than me.

on November 29,2012 | 01:13PM

oxtail01 wrote:

You can thank the Republicans for screwing you - what, low pay? no benefits? That's exactly the kind of workers they want! OR, stop blaming everyone else and get a real job!

on November 29,2012 | 03:40PM

SteveToo wrote:

How about the 3 to 1 spending cuts you said you wanted for each $ increase in taxes? As usual the Democrats just want to spend what WE AIN'T got. Trying to turn us in to a 3rd world dictatorship w/his honor Obama at the head. Thank god we have the 2nd amendment.

on November 29,2012 | 01:58PM

lee1957 wrote:

Timmy "Turbo Tax" Geithner isn't the best ambassador to be pushing the proposal.

on November 29,2012 | 03:34PM

Highinthesierras wrote:

That why Barry sent him. He knows it was DOA - even Dems won't support it. So, just like always, no leadership from the WH.

on November 29,2012 | 04:11PM

st1d wrote:

$1.6 trillion in new taxes. yes.

and, raise the minimum wage to $80 an hour. that would move most working people out of the poverty level in the u.s. and at the same time increase tax revenues. a win - win for all.

on November 29,2012 | 06:00PM

64hoo wrote:

house repubs don't vote on such a bill the dems are setting you up so you can take the blame for rasing taxes. even if you increase the taxes on the rich and there investments you get about maybe 6 billion what about the other 8 billion they would need that to raise taxes on the middle class and small business just to get 1.6 trillion to help cut the defecit. so all it is. is a tax increase on every american.

on November 29,2012 | 08:36PM