Congressional Republicans are offering a deficit-reduction solution to newly re-elected President Barack Obama: Let’s negotiate in good faith and all agree on our pre-election proposal.
House Speaker John Boehner, who returned to the role of party standard-bearer following Republican presidential nominee Mitt Romney’s election loss, told reporters yesterday that Republicans are “willing to accept new revenue under the right conditions.” He cited ideas Democrats already have rejected: restructuring entitlement programs and relying on revenue generated by economic growth from a tax-code overhaul.
U.S. stocks tumbled yesterday, with the Dow Jones Industrial Average falling 312.95 points, or 2.4 percent, to 12,932.73 in its biggest drop since Nov. 9, 2011. Treasuries rallied, pushing 10-year note yields down by the most since May, on concern that lawmakers won’t agree to defer the mandated spending cuts and tax increases, slowing the economy. The Dollar Index, which measures the greenback against six major trading partners, rose to a two-month high.
Republicans haven’t altered their tax policy stance because they continue to believe it’s right, said Representative Kevin Brady, a Texas Republican and member of the tax-writing Ways and Means Committee.
Obama’s re-election and Republicans’ failed bid to take over the Senate majority showed that voters want higher taxes for top earners, Reid told reporters yesterday.