Obama, Boehner continue stalemate on 'fiscal cliff'

Aamer Madhani and David Jackson, USA TODAY | USATODAY

Show Caption Hide Caption Obama: 'I have met them at least halfway' President Obama answers questions about ongoing "fiscal cliff" negotiations and says he believes a compromise will be met before the deadline.

Boehner will bring his 'Plan B' up for a vote Thursday

Reid says Boehner's plan would never make it through the Senate to get to Obama's desk

White House says the Boehner plan would give millionaires a tax break of $50,000

WASHINGTON — President Obama said Wednesday he and House Republicans led by Speaker John Boehner are separated by "probably a few hundred billion dollars" on the "fiscal cliff" talks, with both men expressing frustration that they have been unable to forge a deal.

Both sides sharpened their rhetoric Wednesday, suggesting they may be at loggerheads with hundreds of billions in tax increase and budget cuts set to be triggered in 12 days.

"Any objective person ... would say we've put forward a very balanced plan," the president told reporters Wednesday. He added: "It is very hard for (GOP lawmakers) to say yes to me. But at some point, they've got to take me out of it and think about their voters, and think about what's best for the country."

The president's comments came soon after the White House announced that Obama would veto a proposed GOP bill that would raise tax rates for Americans making more than $1 million if it reaches his desk.

Boehner floated his so-called "Plan B" legislation Tuesday to avert tax hikes for most Americans set to go into effect at the beginning of next year.

Boehner said in brief comments to reporters Wednesday that he would bring his plan up for a vote Thursday.

"Tomorrow the House will pass legislation to make permanent tax relief for nearly every American — 99.81% of the American people," Boehner said. "Then the president will have a decision to make. He can call on Senate Democrats to pass that bill or he can be responsible for the largest tax increase in American history."

The president said he remains open to negotiations and eager to reach a deal before Christmas. But he also expressed frustration that Republicans seem intent on blocking him for political reasons and insisted that he has gone at least halfway in negotiations.

"I am going to continue to talk to the Speaker (and House Republicans) but ultimately it's up to them to do their job," Obama said.

Before his remarks Wednesday, White House communications director Dan Pfeiffer said the Republican Plan B was unbalanced and promised that the president would veto it if it made it to his desk.

Brendan Buck, a spokesman for Boehner, called the veto threat "bizarre and irrational."

"Republicans have always said a broader, 'balanced' plan is the ideal solution, and we have put one forward," Buck said. "In the absence of a 'balanced' solution from the president, however, we must act to stop taxes from rising across the board in 12 days."

The latest back-and-forth comes as negotiations on tax rates and the looming "fiscal cliff" appear to have slowed, if not ground to a halt.

Senior administration officials said discussions about a major agreement have virtually stopped since Boehner proposed his Plan B, despite the fact it has virtually no chance of passing the Senate. They noted that Obama submitted a plan to the speaker Monday, and they are awaiting a response.

The White House says the Boehner plan would give millionaires a tax break of $50,000 each. The plan also would result in unemployment assistance being cut off for about 2 million Americans who have been receiving extended benefits. Obama added that the Boehner plan "violates the core principles" he debated during the campaign season.

The veto threat is not unexpected. Senate Majority Leader Harry Reid said Tuesday that the Democratic-controlled Senate would not consider Boehner's plan and White House spokesman Jay Carney said it did little to address long-term fiscal challenges.

Obama's latest proposal included extending George W. Bush era rates — set to expire Jan. 1 — for couples making $400,000 or less, a change from his campaign pledge to allow those rates to expire on those making more than $250,000.

The Obama offer also included $1.2 trillion in spending cuts over the next decade. Boehner rejected that offer, saying a significant portion of the cuts came through budgetary gimmicks.

The president sidestepped a question on whether he betrayed positions he took on the campaign trail as he's negotiated a deficit cutting plan — including his position that only those making above $250,000 should pay more in taxes and a resistance to reducing social security benefits

"What I've said is, is that in order to arrive at a compromise, I am prepared to do some very tough things -- some things that some Democrats don't want to see and probably there are a few Republicans who don't want to see either," Obama said.

Obama "has put forward a proposal that meets the speaker halfway on both taxes and spending, offering to work with Republicans to cut spending by ... more than $1 trillion beyond what he has already signed into law," Pfeiffer said. "The president urges the Republican leadership to work with us to resolve remaining differences and find a reasonable solution to this situation today instead of engaging in political exercises that increase the possibility that taxes go up on every American."

An economic analysis prepared by the White House also concludes that the Boehner plan would actually benefit many millionaires because of favorable provisions on estate taxes, personal exemptions and itemized deductions. The administration said the plan would provide an average of $50,000 in tax benefits for people who make more than $1 million, when compared with the plan Obama has proposed.

Many middle class families, meanwhile, would see tax bills rise as much as $1,000 under the Boehner plan. It ends tax breaks that benefit the middle class, including the Child Tax Credit and Earned Income Tax Credit.

Overall, the administration said Plan B would raise only about $300 billion from high-income households, less than a third of what Boehner proposed in his last offer to Obama.

"The notion that that the Speaker wants to run a play that keeps tax cuts for folks making....$900,000 a year and gives more tax breaks to millionaires and billionaires...and then has no cuts in it doesn't make much sense," Obama said. "They're thinking about raising taxes for those making over a million which they say they don't want to to do, but they are going to reject spending cuts they do want to do. That defies logic."

Officials said the president is scheduled to leave for his end-of-the-year vacation in Hawaii on Friday, but he will stay in Washington if fiscal cliff issues are left hanging.