As the tax and spend negotiations continue, President Obama’s most recent offer on Monday included an extension of the Work Opportunity Tax Credit program and other tax extenders. This has been consistent while the public focus of the negotiations has been on areas of deeper disagreement. Already this morning, the White House rejected House Speaker Boehner’s counter offer.
We have correspondence this morning from Paul Suplizio, President of the WOTC Coalition, with encouragement for those hoping to see the tax extenders included in any compromise hammered out by House Republicans and the Obama Administration. Our emphasis for action should be to build a “pro-extenders’ fire under House Republicans and their leaders.”
The following is published here with permission. (Emphasis in bold is from the original.)
From: Paul Suplizio
Sent: Tuesday, December 18, 2012 5:38 AM
Subject: President Makes Comprehensive New Offer Including Tax Extenders
December 18, 2012
Yesterday, the President proposed a 39.6 percent marginal rate on income of joint tax filers above $400,000, withdrawing his previous demand to apply that rate to income above $250,000.
This latest offer to Speaker Boehner is part of a comprehensive deficit-reduction package that includes extension of WOTC and other tax extenders.
The Speaker isn’t satisfied with the offer and negotiations are continuing. The Speaker will meet with House Republicans this morning to report on the talks and get their reaction.
The President’s offer includes a 20 percent tax rate on capital gains and dividends, up from the current 15 percent, and a 45% estate tax (Republicans want the rate to be no more than 35%).
The President wants $50 billion in infrastructure spending, $30 billion to extend unemployment benefits, permanent AMT relief, and permanent Medicare doctors’ relief from scheduled cuts.
On entitlements, the President proposed using the so-called “chained CPI” for annual Social Security and pension cost-of-living increases, plus other savings in entitlement programs.
On spending, the sequester would be delayed and there would be further cuts in discretionary programs including defense.
The President wants the right to set the debt ceiling for another two years under the McConnell rule. The Speaker has already offered one year.
No other details are available on the tax extenders except they continue to be included in each offer made by the President.
Please continue your contacts. These talks could go till the end of the month—we need to continue building a pro-extenders’ fire under House Republicans and their leaders.
PAUL E. SUPLIZIO
President, WOTC Coalition