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Fiscal Cliff Notes for Nov. 29, 2012
32 days to the fiscal cliff
NEW FOR THURSDAY AND WILL BE HERE EVERY DAY: THE SUN-TIMES FISCAL CLIFF COUNTDOWN CLOCK.
BEHIND THE SCENES DEALMAKING
TREASURY SECRETARY GEITHNER HITS CAPITOL HILL
Treasury secretary Tim Geithner–President Barack Obama’s lead on his fiscal cliff negotiating team–with White House top congressional liasion Ron Nabors holds a series of meetings with congressional leaders on Thursday–a sort of shuttle diplomacy.
The Treasury Department describes the meetings this way: “Geithner will meet with congressional leaders on Capitol Hill to continue discussions on the actions we need to take to keep our economy growing and find a balanced approach to reduce our deficit.
“In the morning, Secretary Geithner will meet with Senate Majority Leader Harry Reid. Also in the morning, the Secretary will meet with Speaker of the House John Boehner. In the afternoon, Secretary Geithner will meet with Senate Minority Leader Mitch McConnell. Also in the afternoon, the Secretary will meet with House Democratic Leader Nancy Pelosi.”
Sorry to report these meetings are closed press.
FISCAL CLIFF ILLINOIS IMPACT
The White House put together broad a over-view on what the Illinois impact will be if Congress does not extend a series of federal tax breaks by the Dec. 31 deadline. A central element of the negotiations over the fiscal cliff–a series of automatic tax hikes and spending cuts–is Obama’s demand to first lock in tax breaks that cover 98 percent of earners with income below $250,000 for a couple.
From the White House:
“Illinois’s economy can’t afford that right now. New analysis by the President’s Council of Economic Advisers (CEA) finds that: …..This sharp rise in middle-class taxes and the resulting decline in consumption could slow the growth of real GDP by 1.3 percentage points in Illinois.”
Click below for the complete fact sheet.
OBAMA TALKS FISCAL CLIFF WITH CABINET
At a Wednesday cabinet meeting Obama talked about the fiscal cliff: “And so I think it’s very important that we get that resolved, and I am very open to a fair and balanced approach to reduce our deficit and provide the kind of certainty that businesses and consumers need so that we can keep this recovery going.”
REP. TIM COLE — A REPUBLICAN BREAKING RANKS FOR THE 98 PERCENTERS
Rep. Tom Cole (R-Ok.) is breaking ranks with House GOP leaders -making supportive statements about extending tax breaks for the 98 percenters before Dec. 31. He told CNN on Thursday morning the tactic “strengthens position” and retains “lots of leverage” for Republicans.
‘FIX THE DEBT” COALITION — THE REVIVED SIMPSON-BOWLES DRIVE
Wednesday “Fix the Debt” press conference
ILLINOIS CEO’s on “Fix the Debt” include (NAMES IN BOLDFACE)
The Campaign to Fix the Debt
CEO Fiscal Leadership Council
- Bill Ackman, Founder & CEO, Pershing Square Capital Management, L.P.
- Samuel R. Allen, Chairman & CEO, Deere & Company
- Richard Anderson, Chief Executive Office, Delta Air Lines, Inc.
- Steve Ballmer, CEO, Microsoft Corporation
- David Barger, President & CEO, JetBlue Airways Corporation
- Doug Bergeron, CEO, VeriFone Systems, Inc.
- Mark Bertolini, Chairman, CEO & President, Aetna, Inc.
- Lloyd Blankfein, Chairman & CEO, Goldman, Sachs & Co.
- Glenn Britt, Chairman & CEO, Time Warner Cable Inc.
- Greg Brown, Chairman & CEO, Motorola Solutions, Inc.
- Nicholas Calio, President & CEO, Airlines for America
- Carl Camden, President & CEO, Kelly Services, Inc.
- Russell Carson, Co-Founder & Gen. Partner, Welsh Carson Anderson & Stowe
- Marc Casper, President & CEO, Thermo Fisher Scientific, Inc.
- John Chambers, Chairman, President & CEO, Cisco Systems, Inc.
- Michael Corbat, Chief Executive Officer, Citigroup, Inc.
- David Cote, Chairman & CEO, Honeywell International, Inc.
- Alexander Cutler, Chairman & CEO, Eaton Corporation
- Richard Daly, CEO, Broadridge Financial Solutions, Inc.
- D. Scott Davis, Chairman & CEO, United Parcel Service, Inc.
- Steven A. Denning, Chairman, General Atlantic, LLC
- Barry Diller, Chairman & Senior Executive, IAC/InterActiveCorp
- Jamie Dimon, Chairman & CEO, JPMorgan Chase & Co.
- Scott Donnelly, Chairman, President & CEO, Textron, Inc.
- Craig Duchossois, CEO, The Duchossois Group, Inc.
- Brian Duperreault, President & CEO, Marsh & McLennan Companies, Inc.
- Joseph Echevarria, Chief Executive Officer, Deloitte LLP
- Michael Fertik, Founder & CEO, Reputation.com
- Larry D. Fink, Chairman & CEO, BlackRock, Inc.
- Martin L. Flanagan, President & CEO, Invesco Ltd.
- James Frank, President & CEO, Wheels, Inc.
- Kenneth Frazier, Chairman, President & CEO, Merck & Co., Inc.
below, from the White House…
Impact For Illinois
President Obama is committed to growing our economy from the middle out by ensuring a strong, secure, and thriving middle-class. Now we face a deadline that requires action on jobs, taxes and deficits by the end of the year. While the President is committed to working with Congress to reduce our deficit in a balanced and responsible way, there is no reason to hold the middle-class families in Illinois hostage while we debate tax cuts for the highest income earners.
Illinois Can’t Afford Tax Increases On Middle-Class Families…
A median-income Illinois family of four (earning $79,100) could see its income taxes rise by $2,200.
98 percent of Illinois families who make less than $250,000 a year and would not see an income tax increase under the President’s plan.
…Because Middle-class Families Drive Illinois’s Economy…
The bulk of economic activity comes from American families buying basic necessities like clothing and healthcare; durable goods like cars and furniture; and the food and gifts that millions will enjoy over the holiday season.
The retail industry employs 14.8 million Americans – including 581,300 in Illinois – and has been a key part of the recovery. In the 40 months since the recession ended in June 2009, the retail industry alone has been responsible for more than 9 percent of overall employment growth and has added 438,000 jobs in the past 32 months.
Over the course of this year, American consumers are on pace to spend around $5 trillion on retail sales. And with the start of the holiday shopping season, which accounts for close to one fifth of industry sales nationwide, retailers can’t afford the threat of tax increases on middle-class families.
…Which Is Why Raising Taxes On The Middle-class Will Hurt Illinois’s Economy
Illinois’s economy can’t afford that right now. New analysis by the President’s Council of Economic Advisers (CEA) finds that:
This sharp rise in middle-class taxes and the resulting decline in consumption could slow the growth of real GDP by 1.3 percentage points in Illinois.
Faced with these tax hikes, the CEA estimates that consumers in Illinois could spend nearly $8.5 billion less than they otherwise would have in 2013 just because of higher taxes. Consumers nationwide would likely spend nearly $200 billion less than they otherwise would have in 2013.