Boehner sees short-term budget fix

Susan Davis, USA TODAY | USATODAY

WASHINGTON — House Speaker John Boehner, R-Ohio, says he will resist any effort to make major tax or spending changes in the lame duck session of Congress beginning next week, seeking instead a short-term deal to delay the year-end "fiscal cliff."

"I've never seen a lame duck Congress do big things. And as speaker I feel pretty strongly that a lame duck Congress shouldn't do big things," he said in an interview with USA TODAY. Boehner said retiring and defeated members — who get to vote in the lame duck — should not decide such major legislation. There will be at least 84 new House members in the next Congress beginning in January, 49 Democrats and 35 Republicans. "I think it's important to wait," Boehner said.

Boehner's comments sharpen a deepening partisan divide over the fate of the expiring Bush-era tax cuts that threaten a tax hike on nearly every American household if they are allowed to on expire as scheduled Dec. 31.

Boehner is proposing what he calls a short-term "bridge" that would extend all of the tax rates for one year and buy more time to overhaul the federal tax code. Boehner says that would increase revenue by closing tax loopholes, not by raising the rates individuals pay on their wages.

"There's a lot of ways you could do this that would allow the Congress to fix our tax code next year, look at real spending cuts and entitlement reforms that would produce what the president's called for — a balanced approach," he said.

No deal, Senate Democrats say. Majority Leader Harry Reid, D-Nev., outlined an opposing view: Democrats want an agreement to extend the Bush-era cuts on everyone except the top earners, and they want it done in the next 53 days. "Waiting for a month, six weeks, six months, that's not gonna solve the problem. We know what needs to be done," Reid said.

Boehner said his rank-and-file views heading over the cliff as "unacceptable," but he acknowledged there is no clear path forward for compromise. He was optimistic that a deal would be reached between himself, Reid and President Obama.

"I have no doubts that they're as interested in doing the will of the American people as I am," he said.

Obama is scheduled to make a statement about the fiscal situation at the White House Friday afternoon.

Boehner pledged to work with Obama to find consensus but offered a critical assessment of his re-election victory speech. "It sounded pretty good, but you know, I remember that speech from four years ago, and that sounded real good, too," he said. "I don't mean to seem harsh, but actions speak louder than words."

As Obama aims to shape a second-term legacy, Boehner is likewise mindful of his. "I didn't come here to be a congressman, I came here to do something on behalf of my country. I don't want to be speaker because I needed this big, fancy office, a big title," he said, "I wanted to be speaker so I could lead an effort to do the right things for our country. And this idea that we continue to spend money that we don't have is anathema to everything I believe in."

In a wide-ranging interview, Boehner repeatedly spoke of finding "common ground" with Obama and Reid. But he refused to budge on raising tax rates. "Raising taxes on small businesses will kill jobs in America. It is as simple as that."

Boehner acknowledged much work remains before the country tips over the "fiscal cliff" — when nearly every tax cut enacted since 2001 will expire and the first $110 billion of a $1.2 trillion spending cut plan begins.

Boehner wants to protect the defense programs that are threatened under those cuts by finding other budget items to sacrifice instead.

The speaker is as resolute in his position as Democrats are in theirs. Democrats want to raise the tax rates for Americans earning more than $250,000 from 35% to 39.6% as part of a broader effort to get the nation's debt and deficit under control, and they say significant steps can be made in the lame duck Congress toward deficit reduction and tax changes.

Sen. Charles Schumer, D-N.Y., said that for Democrats, higher rates on the wealthy "absolutely" have to be part of a deal. "It matters very much" where the revenue comes from, he said. Democrats will have "a relentless focus on the middle class and helping them grow" for the next two years. Schumer said Democrats want to address tax changes for individuals in the lame duck session and take on the corporate tax structure overhaul separately in the next Congress.

Boehner said tax changes must be done together as a whole, highlighting another divide. "It's all one part," he said.

Despite Obama's victory, Boehner said neither the Democrats nor Republicans have "a mandate" from the election. "The election was decided by about 1% of the American people."

Beyond the fiscal fight, Obama may find renewed interest from across the aisle on overhauling the nation's immigration laws. Hispanics sided decisively with the Democratic Party on Election Day, a growing cause for concern for many GOP leaders, Boehner included. "I think it's important that we find common ground with our colleagues and deal with this issue forthrightly," he said, adding that Republicans have work to do to diversify their party and their representation in the House, which continues to be dominated by white males, while Democrats are poised to become a minority- and woman-dominated party.

"We need to find more effective ways to talk to the American people about who we are as a party," he said, "Frankly, our opponents have done a pretty good job of labeling us as against women, against minorities. We need to do a more effective job communicating with the American people."

Boehner was less warm to renewed Democratic calls for climate change legislation reinvigorated in the wake of Superstorm Sandy, which crippled the Northeast. "I don't think there's any doubt that we've had climate change over the last 100 years. What has initiated it, though, has sparked a debate that's gone on now for the last 10 years," he said. "I don't think we're any closer to the answer than we were 10 years ago."