In a statement released by the White House, Communications Director Dan Pfeiffer says President Obama would veto John Boehner’s “Plan B” proposal to extend Bush tax cuts for everyone making up to $1 million:
This approach does not meet the test of balance, and the President would veto the legislation in the unlikely event of its passage.
The president’s position has been that middle-class tax cuts on income up to $250,000 should be extended, although on Monday he offered a concession to Republicans, saying he would accept extending tax cuts on the first $400,000 of income. Republicans rejected that offer, however, responding with Boehner’s “Plan B” to set the threshold at $1 million.
Boehner first offered the $1 million proposal on Friday, so in countering with $400,000, the White House appeared to be saying that $1 million was too high a threshold, but that it was willing to negotiate on a threshold in order to get a deal on the fiscal cliff. But with Republicans rejecting that offer (which also included Social Security cuts), and the White House now rejecting “Plan B” the publicly-stated positions are far apart.
h/t Daily Kos
Unless Congress acts, tax rates will increase on all income earners on Jan. 1. Boehner first opposed raising rates on any income earners, including the wealthiest Americans, but agreed on Friday to accept an increase in tax rates for taxpayers who earn more than $1 million. Boehner’s plan would raise about $1 trillion in taxes over 10 years.