The Norman Transcript

Breaking News

Nation/World

November 19, 2012

White House facing hurdles

NORMAN — Lawmakers will have to resolve disagreements to avoid fiscal cliff

WASHINGTON — It’s entirely possible that lawmakers and the White House will reach a deal that staves off an avalanche of tax increases and deep cuts in government programs before a Jan. 1 deadline. To do so, however, they’ll have to resolve deep political and fiscal disagreements that have stymied them time after time despite repeated promises to overcome them.

For many economists, corporate leaders and politicians, it’s unconscionable to let the government veer over the “fiscal cliff,” which could drain $500 billion from the still-struggling economy next year. But even President Barack Obama says it could happen.

“Obviously we can all imagine a scenario where we go off the fiscal cliff,” the president said last week. The likeliest cause, he suggested, would be “too much stubbornness in Congress,” especially on the issue of taxes.

Many Republicans in Congress counter that it’s Obama who is too unyielding.

The knottiest issues facing the White House and congressional negotiators include:

Tax rates: Obama campaigned on a pledge to end the George W. Bush-era tax cuts for households making more than $250,000 a year. Republican leaders say the lower rates from 2001 and 2003 should remain in place for everyone, including the rich.

Both sides have dug in so deeply that it will be politically painful to back down. Republicans say tax increases on the rich would inhibit job growth. Democrats dispute that, and say it’s only fair for the wealthiest to provide more revenue in this era of historically low tax burdens and a growing income disparity between the rich and the poor.

Most Republican lawmakers have signed a pledge not to allow tax rates to rise, even if they are scheduled to do so by law, as are the Bush-era cuts. Some Democrats say it may be necessary to let the Dec. 31 deadline expire and have everyone’s tax rates revert to the higher, pre-Bush levels. Then, the argument goes, Republicans could vote to bring the rates back down for most Americans, but not the richest, without breaking their pledge.

Text Only | Photo Reprints
Nation/World
  • Study: Half of jailed youths have injury

    NEW YORK — About half of all 16- to 18-year-olds coming into New York City’s jails say they had a traumatic brain injury before being incarcerated, most caused by assaults, according to a new study that’s the latest in a growing body of ...

    April 19, 2014

  • Senate to debate rideshare regulations

    PHOENIX — Among the major issues left to cover at the Arizona Legislature before the session ends is how to regulate the increasingly popular ridesharing programs like Uber and Lyft. The contentious debate has pitted traditional taxi ...

    April 19, 2014

  • Quake shakes Mexican capital

    ACAPULCO, Mexico — A powerful magnitude-7.2 earthquake shook central and southern Mexico on Friday, sending panicked people into the streets. Some walls cracked and fell, but there were no reports of major damage or casualties....

    April 19, 2014

  • Fear and loathing

    DENVER — A college student eats more than the recommended dose of a marijuana-laced cookie and jumps to his death from a hotel balcony. A husband with no history of violence is accused of shooting his wife in the head, possibly after ...

    April 19, 2014

  • Captain arrested after sinking of ferry

    MOKPO, South Korea — The captain of a sunken South Korean ferry was arrested Saturday on suspicion of negligence and abandoning people in need, as investigators looked into whether his evacuation order came too late to save lives. Two crew ...

    April 19, 2014

  • Judge asks pointed questions in gay marriage case

    DENVER — A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions....

    April 18, 2014

  • Sudan: 12 die after mob attacks UN base

    JUBA, South Sudan — An angry mob of South Sudanese youths attacked a U.N. base on Thursday to harm members of an ethnic minority sheltering inside. Peacekeepers were forced to open fire, amid rampaging violence that killed at least 12 ...

    April 18, 2014

  • Astronomers spot most Earth-like planet yet

    LOS ANGELES — Astronomers have discovered what they say is the most Earth-like planet yet detected — a distant, rocky world that’s similar in size to our own and exists in the Goldilocks zone where it’s not too hot and not too cold for ...

    April 18, 2014

  • Creek, old purse solve mystery

    ELK POINT, S.D. — Cheryl Miller and Pamella Jackson had planned to celebrate the end of the 1971 school year by gathering with classmates at a quarry along a gravel road....

    April 18, 2014

  • Chaotic scene described on sinking ferry

    MOKPO, South Korea — There was chaos and confusion on the bridge of a sinking ferry, with the captain first trying to stabilize the listing vessel before ordering its evacuation, a crewman said Thursday....

    April 18, 2014