House Speaker John Boehner may finally be ready to allow higher tax rates for America’s richest citizens. While Boehner has long asserted that Obama was incorrectly placing America’s deficit responsibilities on the countries most wealth citizens, he now appears to have shifted his attention to tax payers earning $1 million or more per year.
According to CNN:
“[A] source, who spoke on condition of not being identified further [said], Boehner proposed allowing tax rates on income over $1 million to return to higher rates of the 1990s while extending current reduced rates for all income up to that threshold.”
In order for that rule to go into effect, Boehner wants certain spending cuts and reforms geared towards entitlement programs and the tax system.
The move appears to be nothing more than posturing on behalf of Boehner. President Obama has long claimed he would not accept compromises on his $250,000 tax increase floor, a level President Obama says American’s supported when they re-elected him for a second term.
Obama has said he would compromises on Boehner’s entitlement reforms and spending cuts if he would grant the $250,000 income level compromise.
John Boehner in the past offered tax revenue increases through the elimination of unspecified deductions and tax loopholes.
According to the Huffington Post:
“Until now, Boehner had maintained his opposition to raising any rates. Instead, he had proposed to raise up to $800 billion in tax revenue over 10 years by limiting tax loopholes and deductions as part of a broad tax overhaul.”
While President Obama and John Boehner spoke face-to-face at the White House on Tuesday, that “frank” discussion is not believed to have led towards any major discussion breakthroughs.
With the “fiscal cliff” upon us, Boehner, Obama, and their respective parties are expected to hold expedited meetings in the coming weeks.