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Biden and McConnell pulled deal on 'fiscal cliff' back in the brink,[link widoczny dla zalogowanych]
- They had 80 hours to finish or fail.
Stuck in a "fiscal cliff" stalemate, trust nearing tatters,[link widoczny dla zalogowanych], The president and Senate Republicans changed the overall game after Christmas. It took the rekindling of the old friendship between Vice President Joe Biden and GOP Sen. Mitch McConnell, an extraordinary flurry of secret offers,[link widoczny dla zalogowanych], a pre-dawn Senate vote on New Year's Day and also the legislative muscling that defines Washington on deadline.
The way the final days of private negotiations pulled the nation back from the precipice of the fiscal cliff marked an uncommon moment of bipartisanship for any divided government. Talks between the president and House Speaker John Boehner had failed, so Obama put the fate from the fiscal cliff in the hands of McConnell and Senate Majority Leader Harry Reid.
McConnell made the very first move. The Kentucky Republican proposed an agenda late Friday night that would extend tax cuts expiring Jan. 1 on family income up to $750,000 annually, based on officials. He also wanted to keep tax rates on wealthy estates at 35 percent, slow the growth of Social Security cost-of-living increases,[link widoczny dla zalogowanych], and purchase an offset of the sequester Congress's term for across-the-board spending cuts __ by means-testing Medicare. His offer did not include the extension of unemployment benefits Obama had demanded.
Democrats balked and began preparing a counteroffer. It required extending tax cuts for family income up to $350,000,[link widoczny dla zalogowanych], a concession from Obama's campaign pledge to cap the threshold at $250,[link widoczny dla zalogowanych],000. The Democratic leader also insisted that any deal incorporate a method to deal with the sequester,[link widoczny dla zalogowanych], with an extension from the jobless benefits for just two million Americans.
The negotiating teams traded ideas backwards and forwards on a wintry Saturday. He dropped the tax cut threshold to $550,[link widoczny dla zalogowanych],000,[link widoczny dla zalogowanych], put the sequester up for grabs, and offered a one-year extension from the jobless benefits so long as they were taken care of through Social Security savings.
Rather than make a counteroffer, the Senate Democratic negotiating team said hello was going home for that night. They reconvened Sunday morning under 2 days before the combination of tax hikes and spending cuts were because of kick in but nonetheless had nothing a new comer to present to McConnell.
Reid's inaction,[link widoczny dla zalogowanych], officials said,[link widoczny dla zalogowanych], was due simply to McConnell's insistence on keeping the tax cut threshold above $500,[link widoczny dla zalogowanych],000, a level Obama refused to agree to.
A frustrated McConnell felt he had one further option. He called Biden,[link widoczny dla zalogowanych], his longtime Senate colleague and frequent negotiating partner, and implored him to part of. Trying to in the pressure about the White House, McConnell publicly announced he was reaching out to Biden during remarks from the Senate floor throughout the rare Sunday session.
Until this late stage, Biden had played a secondary role in the "fiscal cliff" talks. He spent Saturday at his home in Wilmington, Del., and was planning to go someplace sunny and warm island of St. Croix together with his family for that New Year's holiday.
Obama and Reid both agreed that Biden,[link widoczny dla zalogowanych], a 36-year veteran of the Senate, should move forward. Sunday, Obama, Biden and staffers met within the Oval Office to go over what the vice president would deliver to McConnell because the administration's final offer.
The president set the upper limit for the tax cut extension at family income of $450,[link widoczny dla zalogowanych],000. The sequester must be handled, he said,[link widoczny dla zalogowanych], and then any delay must be offset through a combination of spending cuts and revenue increases. And Obama demanded that the jobless benefits be extended for one year with no way to from the $30 billion cost.
Soon after midnight, Biden had McConnell's consent on nearly all of the outstanding issues. to speak through the final details. Monday.
At that time, the White House had spoken to Reid,[link widoczny dla zalogowanych], who rejected the idea of holding another sequester vote. Biden broke the news to McConnell inside a pre-dawn phone call.
The sequester remained the sticking point throughout Monday,[link widoczny dla zalogowanych], with Biden trading proposals with McConnell's office for a lot of the day. By early evening, discussions coalesced around delaying the automatic spending cuts by two months and spending money on the undertake a combination of new spending cuts and revenue increases. After Obama called Reid and Pelosi to have their sign-off,[link widoczny dla zalogowanych], the v . p . headed up to Capitol Hill to market the bill to Senate Democrats.
Lawmakers and staff rang within the new year in cramped offices in the West Wing and on Capitol Hill, encompassed by empty pizza boxes and the stray bottle of cheap champagne.
Midnight also marked as soon as the government technically went within the "fiscal cliff,[link widoczny dla zalogowanych]," although financial markets were closed Tuesday for that holiday. But optimism ran at the top of each side of Pennsylvania Avenue that the impact would be negligible.
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