http://www.zerohedge.com/news/2012-12-21/twas-last-obama-conference-cliffmas?page=1
( Obama can kick proposal..... Dems will seek : 1) middle class tax cut ( 250,000 maybe as high as 400,000 ) ; 2) extension of unemployment benefits ; 3 ) pause effect of sequester spending cuts ...... sounds like the best case scenario for the Dems ......But I can't see why GOP would say yes - the Obama small package allows for tax cuts to expire for those not defined as middle class , nothing hits debt and deficit spending problems , nothing regarding overhauling tax code , nothing on entitlements , nothing on debt ceiling..... )
http://www.zerohedge.com/news/2012-12-22/how-fiscal-cliff-talks-collapsed
How The Fiscal Cliff Talks Collapsed
The collapse of the Fiscal Cliff talks should come as no surprise to anyone (except, of course, for all those "expert" political commentators virtually all of whom saw a deal by December 31: a full list of names is forthcoming). The reason: a simple one - a House torn, polarized to a record extreme, and a political environment in which the two parties, in the aftermath of a presidential election humiliating to the GOP, reached unseen before antagonism toward each other. In this context, it was absolutely inevitable that America would see a replica of last summer's debt ceiling collapse, which mandated a market intervention, in the form of a crash, and the wipeout of hundreds of billions in wealth - sadly the only catalyst that both parties and their electorate, understand. We had prefaced this explicitly in early November when we said that "the lame duck congress will posture, prance and pout. And it is a certainty that in the [time] remaining it will get nothing done. Which means, that once again, it will be up to the market, just like last August, just like October of 2008, to implode and to shock Congress into awakening and coming up with a compromise of sorts." Which of course brought us to Thursday night's mini-TARP moment.
If you missed Thursday's ES flash crash, fear not: there will be more "TARP moments" as first the Fed is brought into action (as wereminded yesterday), and then, as the final deadline - that of the expiration of various debt ceiling extension gimmicks which takes place in March, and which is the realdeadline for a deal. Nonetheless, there are those forensic detectives who are addicted to every single political twist and turn, and who are curious just where and when the Fiscal Cliff talks broke down in the past week. In this regard, the WSJ provides a useful timeline.
From the WSJ:
Mr. Obama repeatedly lost patience with the speaker as negotiations faltered. In an Oval Office meeting last week, he told Mr. Boehner that if the sides didn't reach agreement, he would use his inaugural address and his State of the Union speech to tell the country the Republicans were at fault.At one point, according to notes taken by a participant, Mr. Boehner told the president, "I put $800 billion [in tax revenue] on the table. What do I get for that?""You get nothing," the president said. "I get that for free."Well, you can't fault the man at not demonstrating "leadership" at crucial junctions: after all it's only fair he gets something for free.The White House's first formal offer, presented Nov. 29 left Mr. Boehner incredulous. It included a request for $1.6 trillion in additional tax revenue over 10 years, a permanent increase in the debt ceiling and money for road projects and other year-end priorities. In return it offered spending cuts of $400 billion—25 cents for each dollar in new revenue.Taking a drag on his cigarette, Mr. Boehner asked Treasury Secretary Timothy Geithner, who had presented the plan, a number of questions but didn't fully engage him. Across the Capitol, Senate Minority Leader Mitch McConnell (R., Ky) said he laughed at the offer.The same sticking points kept rearing up—the White House insisting on more tax revenue than Republicans could stomach, and the Republicans demanding deeper cuts than the White House would accept.During one session in the Capitol with White House's legislative liaison Rob Nabors, Mr. Loper from the Boehner camp asked, referring to a near-deal during last year's debt-ceiling fight: "Can you get back into the zone of where you were in July 2011?""No," Mr. Nabors replied. "We were probably overextended then, and there's no way we would do it now."Mr. Nabors said if they couldn't reach a deal, they should keep lines of communication alive. The typically serious Mr. Loper asked, "So, you're breaking up with us?"On Dec. 13, Mr. Boehner went to the White House at the president's request, joking he was going to the woodshed.The president told him he could choose one of two doors. The first represented a big deal. If Mr. Boehner chose it, the president said, the country and financial markets would cheer. Door No. 2 represented a spike in interest rates and a global recession.Mr. Boehner said he wanted a deal along the lines of what the two men had negotiated in the summer of 2011 in a fight over raising the debt ceiling. "You missed your opportunity on that," the president told him.That night, the speaker and Majority Leader Eric Cantor (R., Va.) decided to make the biggest concession so far.As the country the next day digested news of a brutal school shooting in Connecticut, Mr. Boehner called the president and for the first time offered to let tax rates rise—on income above $1 million. The president acknowledged the concession but said Mr. Boehner's plan wasn't raising enough revenue.News broke the next night both about the concession and that the speaker was willing to extend the borrowing limit. On Sunday, the White House sent a plane to fly Mr. Boehner back to Washington for a morning appointment with the president on Monday, the day it now appears the deal fell apart.In that session, the president held firm for $1.2 trillion in additional tax revenue, a second step down from his original offer. Mr. Boehner asked for another $100 billion in spending cuts but couldn't get a commitment.Finally, the speaker said, "Well, you and I can sit here and stare at each other," or he could leave and they would talk later.Eventually, Boehner managed to turn the tables on a president who was convinced he would get all the concession he demanded. Or so Boehner thought:Back in the Capitol, Mr. Boehner told Mr. Cantor the president wasn't moving. They agreed to call him. On the call, Mr. Boehner restated he needed $1 in spending cuts for every $1 in revenue raised. He dropped a prior demand to increase the Medicare eligibility age.The president told Mr. Boehner that he was willing to make some concessions on taxes and spending, but cautioned that they needed to retain Democratic votes for the bill to pass.The speaker raised the prospect of moving a backup bill. White House officials said Mr. Boehner didn't reveal what Plan B comprised. Administration officials expected a few more days of back-and-forth, but the speaker thought the prospects were dim for a big deal.Meeting with his leadership team in the afternoon, Mr. Boehner read from a script prepared by his staff, telling lawmakers he still wanted a big deal but the rank and file needed to know the plan by a 9 a.m. conference meeting the next morning, Tuesday. He encouraged his colleagues to accept the backup plan."I'm going to keep the proposal on the table," he said of the broader deal. "As I told the president, I'm not making an ultimatum. The offer stays on the table, even if we move on Plan B."His lieutenants made clear they preferred Plan B to the one Mr. Boehner was trying to broker.The speaker called the president with news the House would move ahead with the backup bill, which would preserve Bush-era rates for all income below $1 million. The president was incensed.Everyone knows what happened what Boehner was finally unable to get even the votes needed for "Plan B." And what happened after that too:On Friday afternoon, the president spoke to both Mr. Boehner and Senate Democratic leader Harry Reid in a bid to resurrect a deal. Soon afterward he left the White House for his annual family vacation in Hawaii.And from Reuters:The president is expected to indulge in some of his favorite pastimes on the island where he was born and raised: golf, an expedition for the local treat "shave ice," and an evening out with family and friends. He hit the links at the nearby Marine Corps base under sunny skies on Saturday afternoon.Needless to say no deal will be "resurrected", and the US economy, like the Coyote, will go right off the cliff, with hopes for a prompt fix in the early days of January, at which point, the thinking supposedly goes, all those managers who fired tens of thousands of workers due to the new "post-Cliff" reality will miraculously rehire them back. After all the market said so: the same "efficient" market which continued to plow higher for three days after it is now clear the deal had fallen apart.Next steps: nothing out of Washington for three months, even as Obama crucifies the GOP at every possible public opportunity, and another credit downgrade of the US, which initiates the early 2013 risk off phase, and the scramble into the "safety" of US bonds once more as was the case in 2011. In doing so it will provide a cover to all those sell side "strategists" (all of them) who once again, erroneously, predicted a recovery for the US in the coming year. After all who could have possibly anticipated the most perfectly logical political outcome... Because the one thing that is most important to both parties is to maintain demand for US paper, as that, and not taxes, in both the coming year and decade, will consistently be primary source of 'funding' for the US government.
http://thehill.com/homenews/senate/274417-pressure-grows-on-senate-to-act-on-fiscal-cliff
Pressure grows on Senate Democrats to act on ‘fiscal cliff’
- 12/22/12 12:00 PM ET
Senate Majority Leader Harry Reid (D-Nev.) is resisting pressure from Republicans pushing for the Senate to take a more active role to avoid the “fiscal cliff” after House legislation stalled Thursday.
Reid has rejected Speaker John Boehner’s (R-Ohio) assertion that avoiding the fiscal cliff now depends on President Obama working out a deal with the Senate. Reid’s allies said it is unrealistic to expect him and Senate Republican Leader Mitch McConnell (R-Ky.) to step in and hammer out an eleventh-hour agreement.
On Friday, Reid dismissed McConnell’s proposal that he bring to the floor legislation extending tax rates that could be molded with a variety of amendments.
Reid argues the Senate has already done its work on the expiring tax rates by passing a bill in July shielding family income below $250,000 from tax hikes. He has insisted for weeks that the House take up and pass that bill.
Republicans, however, say the legislation is inadequate because it would allow taxes on inheritances and dividend income to soar.
Until now, Reid has had a limited role in the talks. President Obama kept him informed of negotiations with Boehner, but he was not an active participant.
That may now change. Reid met with Obama at the White House Friday in what could be preparation for a bigger role.
With the talks between Obama and Boehner at an impasse, some Senate Republicans think getting a deal in the upper chamber first is the most likely path forward. Boehner’s failure Thursday to advance his “Plan B” proposal to extend income tax rates for family income below $1 million intensified concerns that he does not have enough support within his own conference to reach agreement with the president.
“We’re now in a bad spot,” said Sen. Lindsey Graham (R-S.C.). “I hope we don’t go over the cliff but I think we are.”
Another senior Senate Republican said the Obama-Boehner talks are “in a ditch”.
But Democratic leaders have firmly resisted moving new legislation to avoid the fiscal cliff. They say Boehner should resume talks with Obama and pass Senate legislation to extend income tax rates for family income below $250,000 as a fallback.
Sen. Charles Schumer (D-N.Y.), Reid’s lieutenant, said the Senate would not move a new bill.
“The two key people are the president and the Speaker and until they come to an agreement, not much else is going to happen,” he said.
Schumer dismissed the notion of the Senate leaders hammering out a short-term agreement to avoid the immediate consequences of the fiscal cliff.
“The last time I read the Constitution, a short-term deal has to pass the House as well as a long-term deal,” Schumer said.
He said Reid would want Obama involved and McConnell would want Boehner’s active input. Even if the Senate leaders could strike a deal, they still would have little guarantee of it getting a vote in the House, he said.
A senior Democratic aide said Reid would not attempt to move first on fiscal-cliff legislation unless he received an assurance from Boehner he would schedule it for a vote in the House.
Boehner called for Senate action after he cancelled a vote on Plan B Thursday evening.
“The House did not take up the tax measure today because it did not have sufficient support from our members to pass,” Boehner said. “Now it is up to the president to work with Sen. Reid on legislation to avert the fiscal cliff.
A senior Democratic aide said Friday McConnell has not made any recent attempt to reach out to Reid to negotiate a solution. The aide noted McConnell is up for re-election in 2014 and would be hesitant to craft any deal that would effectively raise tax rates on the wealthy. This could open him to a Tea Party-backed challenge in the Kentucky Republican primary.
For this reason, some Senate Republicans think it makes sense for McConnell to tap retiring Sen. Jon Kyl (R-Ariz.) to negotiate with Reid. Kyl is an expert on tax and entitlement reform, having participated in the deficit-reduction talks led by Vice President Biden in the summer of 2011 and served as a member of the deficit-reduction supercommittee later that year.
One Republican lawmaker, however, argued that McConnell would be willing to hash out a compromise raising taxes if it included significant entitlement reform.
The senator noted McConnell told The Wall Street Journal last month Republicans would agree to more tax revenue in a budget deal in exchange for reforms to Medicare and Social Security.
McConnell called for a deal that would raise the Medicare eligibility age and Medicare premiums for the wealthy and curb Social Security cost-of-living increases.
But McConnell said additional tax revenues should not come from raising income tax rates, something Democrats say is must-have for any deal. And Democrats say Obama has taken the question of raising the Medicare eligibility age off the table.
http://www.cbsnews.com/8301-34222_162-57560603-10391739/boehner-to-obama-deal-honestly-on-fiscal-cliff/
House Speaker John Boehner, R-Ohio, who suffered an embarrassing setback this week with the failure of his "Plan B" proposal in the House, used his weekly address today to call on President Obama to "deal honestly" with the fiscal problems facing the country and again underscore the GOP's aversion to raising taxes.
Boehner reminded Americans of what's at stake in the next 10 days, saying, "As you know, unless President Obama and Congress take action, tax rates will go up on every American on January 1.
"The day after that, a mandatory 'sequester' will go into effect that will implement harmful cuts to our national defense," explained Boehner. "That is currently the law of the land."
Arguing that "The House has done its part to avert this entire fiscal cliff," Boehner cited the passage of "legislation that would replace the 'sequester' with responsible spending cuts and "a bill to stop all of the January 1 tax hikes."
"Unfortunately, the president and Senate Democrats have vowed to reject and veto all of our proposals while failing to offer a responsible solution of their own," he said.
Boehner explained, "What the president has offered so far simply won't do anything to solve our spending problem and begin to address our nation's crippling debt," accusing the president of refusing "to challenge the members of his party to deal honestly with entitlement reform and the big issues facing our nation."
"I've challenged the members of our party to grapple with these issues, to make tough choices," said Boehner, eliding the fact that many in his own caucus rebelled against his "Plan B" compromise this week.
- No "fiscal cliff" deal under the Christmas tree
- Boehner: It's now up to Democrats to fix "fiscal cliff"
"The president's solution of raising tax rates would still leave red ink as far as the eye can see," argued Boehner. "And it would hurt jobs, at a time when far too many of our citizens are struggling to find them."
"I used to run a small business," he added. "I've seen the damage higher taxes can do to jobs and families. I don't want tax rates to go up. Republicans don't want tax rates to go up. The best way to address our crippling debt is to make significant spending cuts and fix our tax code to pave the way for long-term growth and opportunity."
Despite the gulf between the two parties just ten days from the "fiscal cliff," Boehner remained optimistic: "Of course, hope springs eternal, and I know we have it in us to come together and do the right thing,"
"For now, I wish all the American people a blessed and Merry Christmas."
Twas The Last Obama Conference Before Cliffmas...
... and all through the collocated server house, GETCO algos were stirring, hoping (as this is the only "strategy" left) that maybe, just maybe, Obama can pull a unicorn out of his skittles-dispensing hat. He won't, and most likely we will get one last does of stern fingerpointing, harsh language and accusative condemnation of those wascaly wepublicans. But find out for yourselves in 15 short minutes, when the market may be closed, but futures will still be open, although at least subject to the limit down rule. Of course, if the news was good, it would have come before 4 pm...
* * *
In all seriousness, what Obama will discuss is a last ditch extension, one which merely kicks the can by a week or two. FromPolitico:
Obama’s $2.4 trillion proposal is still on the table — and it remains his preference. But administration officials said Friday that it would be difficult to pass unless House Speaker John Boehner (R-Ohio) decides to rejoin the talks. And he has given no indication that he will.So the White House is looking at one option under consideration by the Senate Democratic leadership: a smaller package that would extend the Bush-era tax rates on income below $250,000, pause the across-the-board spending cuts known as the sequester and renew unemployment insurance benefits, according to Senate and administration officials.
It would hold off a significant portion of the fiscal cliff, minimizing any economic shock in the new year. But it means a host of tax provisions would likely expire, little would be done to address the debt and deficit, and no process would be set up for overhauling the tax code next year. There would be no agreement on entitlements, and no resolution on raising the debt ceiling.Faced with few good options and a shrinking timeline, Democrats are trying to put the squeeze on Boehner after he failed Thursday to come up with enough votes for his bill extending tax breaks on income below $1 million.Dropping the income threshold to $250,000 would be a complete capitulation for Boehner, and the math for getting the votes is tough.
But the White House assumes that, if the Senate passes a bill, an isolated House Republican majority will feel pressured to act, similar to the way the 2011 payroll tax cut fight and debt limit showdown played out.Or not.
http://www.politico.com/story/2012/12/white-house-weighs-smaller-fiscal-cliff-package-85420.html
White House weighs smaller fiscal cliff package
The White House is weighing a scaled-down package to avert the fiscal cliff, recognizing that the chances of a reaching a grand bargain before the new year diminished greatly after Thursday’s House Republican revolt.
President Barack Obama’s $2.4 trillion proposal is still on the table — and it remains his preference. But administration officials said Friday that they won’t be able to get it passed unless House Speaker John Boehner (R-Ohio) decides to rejoin the talks. And he has given no indication that he will.
So the White House is turning its focus to a smaller package that would extend the Bush-era tax rates on income below $250,000, pause the across-the-board spending cuts known as the sequester and renew unemployment insurance benefits, according to senior administration officials.
It would hold off a significant portion of the fiscal cliff, minimizing any economic shock in the new year. But it means a host of tax provisions would likely expire, little would be done to address the debt and deficit, and no process would be set up for overhauling the tax code next year. There would be no agreement on entitlements, and none on raising the debt ceiling.
White House officials said they have to look at what is practical at this point, with only a few days left before the deadline.
The House has already left town and the Senate is expected to follow Friday night. Both aren’t scheduled to reconvene until after Christmas. With Congress gone, Obama is expected to depart for his family vacation in Hawaii and return when lawmakers do.
A scaled-down package would stand a decent of passing the Senate, particularly if the vote threshold were set at a simple majority, which would require Senate Minority Leader Mitch McConnell’s consent.
But the chances in the House remain unclear.
and......
http://www.zerohedge.com/news/2012-12-21/its-330-pm-here-comes-rumor
It's 3:30 PM: Here Comes The Rumor
This manipulated market has become so predictable a blind, retarded monkey with a dartboard should have made enough money by now to retire 3 lifetimes over.
From 9:39 am:
Sure enough, at 3:19 pm:
McConnell demands Senate Democrats now move legislation on fiscal cliff
- 12/21/12 01:50 PM ET
Senate Republican Leader Mitch McConnell (Ky.) on Friday called on the Senate to pass new legislation to avoid the fiscal cliff — a proposal Democrats immediately rejected.
McConnell said Senate Majority Leader Harry Reid (D-Nev.) should bring a bill to the floor that addresses the year-end expiration of lower tax rates and the deep spending cuts set to begin in January. He said the legislation should be subject to full debate and a series of amendments.
“If Sen. Reid has a plan that can get 60 votes in the Senate, break through the disarray in his own caucus and build bipartisan support, offer that as an amendment and then let’s vote," McConnell said. "Let’s vote on amendments from all sides."
McConnell proposed the Senate take up a House-passed revenue measure extending all of the Bush-era tax rates as a legislative vehicle, which would meet the constitutional requirement that all revenue-raising bills originate in the House.
“And then let’s go to conference with the House of Representatives. They’ve already passed a bill, one that I support, to prevent a tax hike on all Americans and reform the tax code. Let’s take it up here and get this done,” McConnell said.
“It's called legislating, folks. It's what Congress used to do,” he said.
Reid immediately shot down McConnell’s idea.
“If this weren’t such a serious situation we face ourselves, it would be laughable,” Reid said. “Can you imaging saying that we should defeat a bill that we have already defeated? We voted. We voted on the proposal at the same time we voted to pass that [legislation] protecting middle-class Americans.”
Speaker John Boehner (R-Ohio) earlier in the day called on the Senate to act on legislation to avoid going over the "fiscal cliff" and suggested the House-passed bill extending the Bush tax rates.
“We do have a House bill that sits in the Senate that extended tax rates for all Americans. And we've been waiting since August the 1st for the Senate to act. If the Senate wants to act on that bill, we'll certainly take a look at it,” Boehner told reporters.
Reid said Boehner should resume negotiations with Obama or act on the Senate-passed bill extending current tax rates on family income below $250,000.
"It’s time for the Speaker and all Republicans to return to the negotiating table," Reid said. "In the meantime, the Speaker should bring the middle-class tax cut passed by the Senate five months ago to the floor of the House."
Republicans say House action on the Senate bill is not possible because the Constitution specifies that revenue-raising measures must originate in the lower chamber.
Senate Democrats argue this objection is bogus. They say it would be easy for the House to insert the substance of the Senate tax bill, which passed in July, into a House-originated vehicle.
House Minority Leader Nancy Pelosi (D-Calif.) also urged Boehner to get back to the negotiating table, in the wake of Thursday’s events.
“We have no right to walk out the door of Congress with no clear path to a resolution of this challenge,” Pelosi told reporters. “It's time to get back on track.”
Pelosi and other House Democratic leaders said the least Boehner could do was bring up the Senate proposal to lock in tax rates for annual family income up to $250,000 a year.
“This House will say yes, we believe, to a bipartisan compromise bill,” said Rep. Chris Van Hollen (Md.), the top Democrat on the House Budget Committee. “And, we believe it will say yes to the Senate pass bill that is already pending.”
“Plan B may have failed,” said Rep. Steve Israel (N.Y.), the chairman of the Democratic Congressional Campaign Committee. “It is time to get to plan C. Plan C is compromise, and plan C is comprehensive.”
Pelosi and Van Hollen also said that Boehner should not be concerned about having to rely mainly on Democratic votes to pass a “fiscal cliff” deal – noting that, as House Speaker, Pelosi was forced to lean on Republicans to pass an Iraq War spending bill.
“I think Speaker Boehner should bring up a bill like that, that reflects that kind of balance and compromise just as Leader Pelosi did when she was speaker of the House when it came to a bill that dealt with the Iraq war,” Van Hollen said.
Lawmakers are growing more pessimistic about Congress acting in time to avoid tax rates from shooting up for all tax brackets and preventing $110 billion in spending cuts from being triggered.
“We’re now in a bad spot,” said Sen. Lindsey Graham (R-S.C.). “I hope we don’t go over the cliff, but I think we are.”
“The time for finger-pointing is gradually running out here,” said McConnell. “The American people know we have a president, they know we have a Senate and they know we have a House, and they’re anxiously waiting whether we’re going to solve this problem before the end of the year.”
and.......
http://thehill.com/homenews/house/274187-house-gop-pulls-plan-b
Boehner cancels vote on 'Plan B', says cliff solution up to Democrats
- 12/20/12 09:51 PM ET
Short of votes, House Republicans pulled Speaker John Boehner’s “Plan B” tax bill from the floor late Thursday, testing the Ohio Republican’s hold on his conference and throwing year-end efforts to avoid the fiscal cliff into further chaos.
Party leaders had voiced confidence throughout the day they had enough Republican votes to pass the measure over unified Democratic opposition, but amid mounting defections, they announced shortly before 8 p.m. that the vote would be canceled.
Pulling the bill represents a major defeat for Boehner that will give significant leverage to Obama in talks on a deal to prevent looming tax hikes and spending cuts. It suggests Boehner lacks control over a conference that has bucked him throughout this Congress.
After a closed-door conference meeting, the Speaker said it was now up to Senate Majority Leader Harry Reid (D-Nev.) and President Obama to find a way to avert the tax hikes and spending cuts set to be triggered in January that economist warn could start a recession. He told The Hill that the House would come back “when needed.”
“The House did not take up the tax measure today because it did not have sufficient support from our members to pass,” Boehner said. “Now it is up to the president to work with Sen. Reid on legislation to avert the fiscal cliff.
“The House has already passed legislation to stop all of the Jan. 1 tax rate increases and replace the sequester with responsible spending cuts that will begin to address our nation’s crippling debt. The Senate must now act,” Boehner said.
Boehner was referring to legislation approved by the House in August that extended all of the Bush-era tax rates. The Senate, which did not take up the House bill, has approved legislation that extends tax rates on annual income below $250,000, which would allow rates on higher income to increase.
One Republican in the conference meeting, speaking on the condition of anonymity, said after Boehner addressed the conference, freshman Rep. Mike Kelly (R-Pa.) took the microphone and emotionally laid into his colleagues.
“What are you guys doing?” Kelly said. “How the hell can you do this to the Speaker?”
Shouting ensued among members, and then Boehner returned to the microphone to calm lawmakers down, telling them there were people “of good will” on both sides of the issue, the House Republican said.
The bill pulled from the House floor Thursday extended current tax rates on annual income up to $1 million but allowed rates to rise for taxpayers earning more.
Senate Democrats had vowed to shelve the bill, and President Obama threatened a veto, arguing that Boehner’s push for the legislation was a waste of time that could have been spent better in negotiations.
The Speaker had argued that his fallback plan was the best the House could do in the absence of a broader deficit agreement with the president.
He had suggested earlier Thursday that Reid was bluffing when he said the Senate would ignore the legislation. But by the evening, Republicans were the ones who had overplayed their hand.
House Republicans emerged from their brief conference meeting in shock and disarray.
“We have different approaches to this problem, and we just couldn’t get enough consensus,” Rep. John Fleming (R-La.) said. “I opposed it. There weren’t enough votes to make it pass … without us being on the same page with the same strategy, we decided as a group not to move forward.”
“This is a victory for conservative principles,” said Rep. Tim Huelskamp (R-Kan.). a conservative stalwart who frequently opposes leadership. He held a press conference on Wednesday to denounce Boehner’s bill.
Appropriations Committee Chairman Hal Rogers (R-Ky.) said that the country should not necessarily believe it is going over the fiscal cliff.
“The negotiations with the White House are ongoing,” he said. “So we’ll see.”
“I am disappointed, of course,” he said.
Rep. Steve LaTourette (R-Ohio) told reporters that Boehner told lawmakers that they might return after Christmas or they "may not come back at all this year."
A Boehner spokesman said the Speaker did not address the schedule in the meeting. A spokesman for Majority Leader Eric Cantor (R-Va.) said "members were told they could be called back with 48 hours notice."
“It is now clear that to protect the middle class from the fiscal cliff, Speaker Boehner must allow a bill to pass with a combination of Democratic and Republican votes,” Reid spokesman Adam Jentleson said in a statement.
“Speaker Boehner’s partisan approach wasted an entire week and pushed middle-class families closer to the edge. The only way to avoid the cliff altogether is for Speaker Boehner to return to negotiations, and work with President Obama and the Senate to forge a bipartisan deal,” Jentleson said.
The drama on Thursday was in many respects a reprise of the debt-ceiling debate in July 2011, when Boehner was forced to pull a Republican proposal off the House floor for lack of votes. In that instance, he added measures to please conservatives and pass the legislation the next day.
This time around, Republican leaders had already made a concession to conservatives by allowing a separate vote on a measure to replace the $109 billion in across-the-board cuts to defense and domestic spending. Boehner’s tax bill contained no spending cuts and did not replace the cuts from sequestration, angering many Republicans.
But when that bill came up for a vote earlier Thursday evening, it passed by a narrow margin, 215-209, with one Republican voting present. No Democrats voted for the bill.
Before the bill was pulled, the mood among rank-and-file GOP lawmakers was grim.
Asked for his prediction on how the fiscal-cliff standoff would end, retiring Rep. Steve LaTourette (R-Ohio) said, “We get our clocks cleaned. That’s how it ends. There’s no leverage here.”
Another retiring member, staunch conservative Rep. Dan Burton (R-Ind.), shared that view, saying Republicans were in a tough spot going up against a reelected president whose approval ratings are on the rise.
In the latest Gallup survey, 56 percent of respondents approved of Obama’s job performance compared to 37 percent who disapproved, matching his highest rating in three years.
To lead the debate on the spending bill, Boehner turned to Rep. Paul Ryan (R-Wis.), the House budget chief who spoke on the floor for the first time since his bid to become vice president fell short.
“Look, elections have consequences,” Ryan said. “I, of all people, understand that.”
“What we are trying to do here is limit the damage to the taxpayers. There is not a single tax increase in here,” he added, adopting a line of argument that Republicans had decried weeks earlier.
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