U.S. House Likely to Vote on Boehner’s “Plan B” Today; Would Cave on Raising Tax Rates for People making over $1 Million

The U.S. House of Representatives will vote today on Speaker John Boehner’s “Plan B,” which would extend current tax rates for most Americans, but would raise tax rates on people earning over $1 Million. Boehner’s decision to cave on raising tax rates is not setting well with a lot of Republicans, who know this will only further depress business activity:

CNN: The House is set to vote Thursday on Plan B, a GOP version of an agreement on the fiscal cliff, and another measure designed to lure support for the plan from hard-line Republicans.

The White House threatened Wednesday to veto that plan, saying it would bring only “minimal” changes in projected budget deficits.

Lawmakers face a deadline to avoid falling off what’s being called the fiscal cliff — the specter of huge tax increases and deep spending cuts set to kick in in January if no budget agreement is reached by December 31.

The negotiations had focused on a $2 trillion package of new revenue, spending cuts and entitlement changes the two sides have shaped into a broad deficit reduction plan. The stakes are high as economists say that failure to reach an agreement could spark another recession.

House Speaker John Boehner has proposed Plan B, which would extend Bush-era tax cuts on income of up to $1 million. He described it as a fallback option to prevent a sweeping tax hike while negotiations continue on a broader plan.

GOP leaders also had planned to vote Thursday on President Barack Obama’s long-standing proposal to return to the higher tax rates of the 1990s on income above $250,000 for families.

But Republicans decided to drop their plan to vote on extending tax breaks on incomes over $250,000. One GOP aide said that since the president has moved the threshold to $400,000, there is no point to that exercise.

Because they are having trouble securing votes from conservatives for Boehner’s Plan B, GOP leaders have added a vote Thursday on a measure that would replace automatic spending cuts to defense with cuts elsewhere. . . . Read More

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