[img]http://puu.sh/1DlDm[/img]
[url]http://www.bbc.co.uk/news/world-us-canada-20797537[/url]
[quote=BBC News][B]US Republicans have cancelled a Congress vote on tax rises they hoped would help to avert the so-called fiscal cliff.[/B]
They pulled the vote after failing to get enough support for the bill, labelled "Plan B", which would raise taxes on earnings above $1m (£614,000).
Earlier, another bill that cut domestic spending narrowly passed by 215 to 209.
A deal must be reached by 1 January, or a combination of steep tax rises and sharp spending cuts will take effect.
Analysts in the US and overseas have expressed concern that failure to reach a deal could take the US into recession.
The pair of votes come as talks with the White House appear to have stalled.
President Barack Obama had also sought tax rises for the wealthy, but was pushing for a lower threshold of $400,000.
[B]Veto threat[/B]
The first bill, seeking domestic cuts but protecting the defence budget, passed the House by a narrow margin.
But correspondents say that Republican leaders were unable to garner sufficient votes to secure passage of the second bill and put off the second vote.
House Speaker John Boehner said in a statement that the bill "did not have sufficient support from our members to pass".
Earlier on Thursday, House Majority Leader Eric Cantor said on Thursday: "We, as Republicans, have taken concrete actions to avoid the fiscal cliff."
He and Mr Boehner said the bill put forward would have ensured permanent tax cuts for 99.8% of Americans.
But Mr Cantor added that Republicans would not be sending their members home for the Christmas recess after the vote - a sign that Congress could be expected to vote on a more bipartisan deal within days.
Correspondents say the Republican plan would have had no chance of passing the Democratic-led Senate, and was in effect an effort to tell the US public that they should not be blamed if the US falls over the fiscal cliff.
The White House had threatened to veto the legislation if had passed Congress, saying the bill would mean tax rises on 25 million Americans making under $250,000.
A study by the non-partisan Tax Policy Center found some low-income people would see tax rises because the measure would not renew several tax cuts that were part of the 2009 stimulus package.
On Thursday, the White House criticised Republicans, saying Mr Boehner's response to compromises from the president was "to walk away" from negotiations.
Spokesman Jay Carney said the introduction of Mr Boehner's so-called Plan B was a "multi-day exercise in futility at a time when we do not have the luxury of exercises in futility".
[B]'Partisan war paint'[/B]
Mr Boehner announced the bill on Tuesday, saying he would bring forward a measure that extended Bush-era tax cuts for those earning less than $1m per year - but would not address the automatic spending cuts.
Correspondents say the move came as a surprise as negotiations appeared to be making progress.
On Wednesday, the Republican leadership added a companion bill that would replace the automatic cuts with a proposal to remove cuts from defence and government operating budgets. They would be offset by reductions elsewhere in the budget.
The proposal would cut food stamps, benefits for federal workers and some social services programmes.
Mr Obama's latest offer included a tax rise on incomes over $400,000 (£247,000), an increase on the $250,000 level he had originally sought.
He also offered a change to the way Social Security cost of living adjustments are made for some recipients, cuts from government healthcare programmes and a two-year extension of the debt ceiling.
Mr Boehner's office called the proposal "a step in the right direction" but not fully "balanced".
Analysts have painted a grim picture of the consequences of going over the cliff, with some warning that the impact could push the US back into recession.
The Organization for Economic Co-operation and Development (OECD) said in its latest economic outlook that the recession from the cliff could become global.[/quote]
If they wouldn't pass Boehner's plan, how is he going to get them to pass a plan agreed with Obama, that will likely be even less appealing to them?
There will be no plan before the years end. They'll have to hash out a plan in January, which is honestly probably better for everyone since the Dems will have more leverage.
[editline]20th December 2012[/editline]
And Boehner's finished. Cantor's probably got his dagger ready.
[QUOTE=smurfy;38915567]If they wouldn't pass Boehner's plan, how is he going to get them to pass a plan agreed with Obama, that will likely be even less appealing to them?[/QUOTE]
They'll pull us over the cliff, that's what they'll do.
[QUOTE=Mr. Someguy;38915675]They'll pull us over the cliff, that's what they'll do.[/QUOTE]It's funny cause they just basically cemented the fact that it will be them to blame for when it eventually happens.
I was hoping for Plan B to go out with a bang rather than a wet fart
so are we screwed or what
I guess it was inevitable - the GOP is so radical and willing to do anything for political gain that only a crisis that damages their stock would prevent them pulling stuff like this again.
[QUOTE=Ponder;38915753]so are we screwed or what[/QUOTE]
a lot of republicans in the house didn't want to burn political capital on a bill that was pure theater. we'll probably get something in january
As I said in the other thread, I honestly would like to see us go over the cliff at this point.
[QUOTE=Doctor Zedacon;38907690]This is great news. I actually would really like to see them refuse to agree now because it would end up backfiring horribly and just further damage their reputation and future chances. Besides, if we go over the cliff and taxes go up, Obama can come back afterwards and propose large tax cuts for the lower and middle class only. If the GOP tries to push for tax reductions on high earners, they can easily just point it out and say "The GOP refused to give middle and low income Americans a tax reduction and insisted that high earners get reductions." It would just be devastating.[/QUOTE]
[img]http://i.imgur.com/3ErPj.png[/img]
[QUOTE=Doctor Zedacon;38915906]As I said in the other thread, I honestly would like to see us go over the cliff at this point.[/QUOTE]
Honestly I just want to punch almost every single one of them in the face. This isn't like a serious crisis in their eyes, it constantly looks like all they are able to do is stand in a room that they assure everyone else is so important and occasionally leave to take a shit, then go home and sleep. And for doing this they get better health care than all of us, much bigger paychecks, nation-wide renown and a ton of power.
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