Republicans start work on limited fiscal cliff plan to avert 'most' tax hikes

POSTED: Tuesday, December 18, 2012 - 5:45pm

UPDATED: Tuesday, December 18, 2012 - 5:49pm

Protesters came to the Capitol Tuesday, demanding Republicans agree to tax hikes on the the top two percent of Americans, the original Obama plan that the president campaigned on.

House Speaker John Boehner, meanwhile, is pushing a new compromise that he's calling "Plan B".

Taxes on the wealthiest one percent would go back to the Clinton era rate of almost 40% on income over one million dollars, in trade for taxes on everyone else not rising January 1st.

President Obama says that plan is still not good enough.

His new proposal is to hike taxes on earnings over $400,000 and cut spending by $1.2 trillion.

Briefed by Boehner at the Capitol, some Republicans say the speaker is going too far simply by agreeing to raise tax rates on anyone.

"Oh, I hate it! I hate it," said New Mexico's Rep. Jason Chaffetz.

"Once you cross that line and say, like some people, it's okay for some people's taxes to go up, I think it's not. I think it's a mistake for the the Republican party," added Ohio's Rep. Jim Jordan.

Most Republicans realize the top rate will rise, and are pushing for more spending cuts.

   

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