The Norman Transcript

Nation/World

December 30, 2012

Fiscal cliff approaching

(Continued)

WASHINGTON —

Several officials said Republicans want to leave the tax at 35 percent after exempting the first $5 million in estate value. Officials said the White House wants a 45 percent tax after a $3.5 million exemption. Without any action by Congress, it would climb to a 55 percent tax after a $1 million exemption on Jan. 1.

Democrats stressed their unwillingness to make concessions on both income taxes and the estate tax, and said they hoped Republicans would choose which mattered more to them.

Officials said any compromise was likely to ease the impact of the alternative minimum tax, originally designed to make sure that millionaires did not escape taxation. If left unchanged, it could hit an estimated 28 million households for the first time in 2013, with an average increase of more than $3,000.

Taxes on dividends and capital gains are also involved in the talks, as well as a series of breaks for businesses and others due to expire at the first of the year.

Obama and congressional Democrats are insisting on an extension of long-term unemployment benefits that are expiring for about 2 million jobless individuals.

Leaders in both parties also hope to prevent a 27 percent fee cut from taking effect on Jan. 1 for doctors who treat Medicare patients.

There was also discussion of a short-term extension of expiring farm programs, in part to prevent a spike in milk prices at the first of the year. It wasn’t clear if that was a parallel effort to the cliff talks or had become wrapped into them.

Across-the-board spending cuts that comprise part of the cliff were a different matter.

Republicans say Boehner will insist that they will begin to take effect unless negotiators agreed to offset them with specified savings elsewhere.

That would set the stage for the next round of brinkmanship — a struggle over Republican calls for savings from Medicare, Medicaid and other federal benefit programs.

Text Only | Photo Reprints
Nation/World
  • Rebels release train with bodies from jet

    HRABOVE, Ukraine — Bowing to international pressure, pro-Moscow separatists released a train packed with bodies and handed over the black boxes from the downed Malaysia Airlines plane, four days after it plunged into rebel-held eastern ...

    July 22, 2014

  • Gaza death toll passes 560

    GAZA CITY, Gaza Strip — A high-level attempt by the U.N. chief and the U.S. secretary of state to end deadly Israel-Hamas fighting was off to a rough start Monday: Gaza’s Hamas rulers signaled they won’t agree to an unconditional ...

    July 22, 2014

  • Perry sending Guard troops to border

    AUSTIN, Texas — Gov. Rick Perry is deploying up to 1,000 National Guard troops to the Texas-Mexico border over the next month to combat what he said Monday were criminals exploiting a surge of children pouring into the U.S. illegally. ...

    July 22, 2014

  • Better weather to aid in fire fight

    SPOKANE, Wash. — Calmer winds and cooler temperatures were allowing firefighters to go on the offensive Monday against a destructive wildfire that has charred hundreds of square miles of terrain in Washington State and is the largest in ...

    July 22, 2014

  • Gay, transgender workers gain U.S. bias protection

    WASHINGTON — President Barack Obama on Monday ordered employment protection for gay and transgender employees who work for the federal government or for companies holding federal contracts, telling advocates he embraced the “irrefutable ...

    July 22, 2014

  • Senate race zeroes in on metro Atlanta, north Ga.

    FLOWERY BRANCH, Ga. — Neither Republican running in Georgia’s closely watched Senate race has a natural advantage in metro Atlanta, where the state’s most populous area and a ring of northern exurbs are serving as the key battleground ...

    July 21, 2014

  • How a flood of kids upset immigration debate

    WASHINGTON — The nation’s yearlong deliberation over immigration has taken a head-snapping detour....

    July 21, 2014

  • Kerry makes bid for cease-fire

    WASHINGTON — Secretary of State John Kerry is heading back to the Middle East as the Obama administration attempts to bolster regional efforts to reach a ceasefire and sharpens its criticism of Hamas in its conflict with Israel....

    July 21, 2014

  • U.S. outlines case against Russia on downed plane

    WASHINGTON — Video of a rocket launcher, one surface-to-air missile missing, leaving the likely launch site. Imagery showing the firing. Calls claiming credit for the strike. Recordings said to reveal a cover-up at the crash site....

    July 21, 2014

  • Top school may benefit health

    CHICAGO — Disadvantaged teens may get more than an academic boost by attending top-notch high schools — their health may also benefit, a study suggests. Risky health behavior including binge-drinking, unsafe sex and use of hard drugs was ...

    July 21, 2014