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Source: Fiscal cliff talks
see major setback

CNN, by Dana Bash

Original Article

Posted By:StormCnter, 12/30/2012 3:27:37 PM

Washington – A Democratic source familiar with the talks tells CNN they have hit a “major setback” because Republicans are now insisting that any fiscal cliff deal include “chained CPI," which Democrats consider a “poison pill.” The Democratic source says they understand the president offered this in talks with House Speaker John Boehner, but Democrats say that was in the context of a larger deal - in exchange for changes to the way the debt ceiling is approached - which is not in the plan anymore.

      


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Reply 1 - Posted by: MickTurn, 12/30/2012 3:56:39 PM     (No. 9090341)

I have to assume this means tying all money/taxes etc. to CPI increases...otherwise we pay higher and higher taxes on the same money with more zero´s caused by inflation.



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Reply 2 - Posted by: Nimby, 12/30/2012 5:00:24 PM     (No. 9090390)

There Oblambo moves the goal post AGAIN.

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Reply 3 - Posted by: A Balrog of Morgoth, 12/30/2012 5:18:52 PM     (No. 9090400)

Chained CPI is an attempt to reduce the official cost of living increase by assuming recipients of Social Security and military pensions merely substitute cheaper or generic goods for pricier or name brand as prices rise. Apparently, this can be done over and over...or something.

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Reply 4 - Posted by: Blackeagle, 12/30/2012 5:56:58 PM     (No. 9090443)

Latest is that the GOP (as stated by McCain) is backing off the chained CPI issue. So this article is no longer relevant.

My prediction is that any spending reduction decisions will be dealt with during the debt limit debates. So the automatic spending cuts may be ignored for now and dealt with as part of the debt package.

With all this talk of raising taxes on the wealthier, I rarely see mention of what is happening to dividend and Cap gains rates. Under the Cliff divs are treated as ordinary income and LT cap gains are maxed at 20%. Divs also get a 3.4% increase to pay for Obamacare - for a total of 43.8% Federal tax. Which is why so many companies - like Obama´s Costco - actually borrowed money to pay special dividends this year.

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