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State and Nation

December 27, 2012

Obama back from Hawaii, Congress bickers on cliff

(Continued)

That capped an unpredictable week in which Boehner pivoted away from comprehensive deficit reduction talks with Obama to an aborted attempt to push legislation through the House that retained existing tax levels except above $1 million. Anti-tax Republicans rebelled at raising rates on million-dollar earners, and Boehner backpedaled and canceled the planned vote.

Without congressional action, current tax rates will expire on Dec. 31, resulting in a $536 billion tax increase over a decade that would touch nearly all Americans. In addition, the military and other federal departments would have to begin absorbing about $110 billion in spending cuts.

Failure to avoid the "fiscal cliff" doesn't necessarily mean tax increases and spending cuts would become permanent, since the new Congress could pass legislation cancelling them retroactively after it begins its work next year.

But gridlock through the end of the year would mark a sour beginning to a two-year extension of divided government that resulted from last month's elections in which Obama won a new term and Republicans retained their majority in the House.

The tax issue in particular has been Obama's first test of muscle after his re-election in November. He ran for a new term calling for higher taxes on the wealthy, and postelection public opinion polls show continued support for his position.

Boehner's decision to support higher rates on million-dollar earners marked a significant break with long-standing GOP orthodoxy, but the resistance among his rank and file so far has trumped him as well as any mandate the president claims.

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