Tuesday, December 18, 2012
Senate Majority Leader Harry Reid says a House Republican backup plan for avoiding the "fiscal cliff" can't pass the Democratic-run Senate.
House Speaker John Boehner said Tuesday that he was preparing a backup plan for averting the "fiscal cliff" if President Barack Obama fails to agree to a compromise that is evenly balanced between tax increases and spending cuts. Boehner's backup plan would continue tax cuts for people earning $1 million or less, but allow tax increases on those earning more than that. Still, the Ohio Republican said his talks with Obama will continue.
Without an agreement, taxes will rise for nearly every American on Jan. 1 and wide-ranging spending cuts will also begin taking effect.
Reid said Boehner should focus on negotiations and not succumb to tea party pressure.