Republicans and Democrats returned to Capitol Hill on Tuesday pledging to try to reach common ground — but as each side reinforced its pre-election battle lines, last week’s results appear to have shifted little other than the rhetoric.
He said the looming “fiscal cliff” depends on better cooperation. In his opening bid, he told Republicans in the House to quickly pass tax legislation that would mean a rate increase for the wealthy, but keep rates low for everyone else.
But Republicans have rejected that plan repeatedly, and Senate Minority Leader Mitch McConnell, Kentucky Republican, instead said it was up to President Obama to make overtures to Republicans now that he has secured election to a second term.
“It’s the president’s move,” Mr. McConnell said flatly.
The White House, though, was in no mood to break from its pre-election posture. Press secretary Jay Carney said Mr. Obama still will veto any bill that doesn’t include a tax-rate increase on the wealthiest 2 percent of Americans, and shot down other proposals, such as cutting out loopholes but not raising the rates themselves, as “hypotheticals.”
“What I can tell you is that the president will not sign a bill that extends tax cuts for the top 2 percent with an extension of the Bush-era tax cuts,” Mr. Carney said.
Congress had been in recess for most of the past two months, and lawmakers watched with bemusement as their colleagues dug in again.
“People are stuck in suspended animation,” said Sen. Ben Nelson, a Nebraska Democrat who is retiring at the end of this year. “My hope is that as everybody adjusts to the outcome of the election and looks to their positions that maybe then action will occur. But if it doesn’t, then this country is stuck in neutral. But the problem with being stuck is neutral is that it is actually reverse.”
Mr. Nelson said he doesn’t want to talk about raising more tax revenues until he has seen more spending cuts put on the table.
Republicans say they are willing to break with their past stance and allow the government to collect more revenue — though for now, they don’t appear to be talking about new direct money from higher taxes.
Instead, they propose a streamlined tax code, with lower rates and fewer deductions, which they say will expand the economy. With a better economy, they say, the government can take in more money.
However, budget analysts have said the hole is so deep that the government cannot grow its way out of the problem, and will need either deep spending cuts, significant tax increases or a combination of the two in order to bring the deficit to manageable levels.
All sides have drawn some lines.
Mr. Obama and Democrats have said they need to see tax rates rise, while Republicans have said entitlement programs must face spending cuts.View Entire Story
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Stephen Dinan can be reached at firstname.lastname@example.org.
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