WASHINGTON, Dec 26 (Reuters) – U.S. House of Representatives
Speaker John Boehner on Wednesday urged the Senate to pass its
version of legislation to avert the “fiscal cliff,” in a sign
that congressional efforts to avoid a budget crisis are coming
back to life days ahead of the year-end deadline.
In a statement issued by Boehner and his top lieutenants,
the Republican leadership team said “the Senate must act first”
to revive efforts to avert the $600 billion in automatic tax
hikes and spending cuts due to be triggered on Jan. 1.
They promised that the House would weigh whatever
legislation the Senate produced.
Last week, Boehner’s back-up plan to keep most income tax
rates low collapsed amid opposition from fellow Republicans who
opposed raising taxes on those making more than $1 million a
year.
The failed effort left uncertainty about what the next steps
would be in avoiding the “fiscal cliff,” which economists have
warned could hobble the U.S. economy and lead to another
recession.
The Republican leaders added that if the Senate sent the
House new “fiscal cliff” legislation, “The House will then
consider whether to accept the bills … or to send them back to
the Senate with additional amendments. The House will take this
action on whatever the Senate can pass, but the Senate first
must act.”
“The lines of communication remain open,” the leaders said,
borrowing the same characterization they used for Boehner’s
ultimately unsuccessful talks with President Barack Obama over
the past month.
The House Republican leaders argued that it was the Senate’s
turn to come up with a legislative solution because the House
had produced two bills earlier this year to avert the “fiscal
cliff.” One would have continued the Bush-era’s low income tax
rates for another year, despite strong Democratic opposition to
continuing the tax break for household incomes above $250,000.
Another bill would have replaced $109 billion in automatic
spending cuts due to begin next month by stopping all of the
planned military cuts and placing the entire burden on domestic
activities, including some social safety net programs funded by
the federal government.
Those bills were passed by House Republicans knowing they
would be stopped in the Democratic-controlled Senate, which is
insisting on raising tax revenues to help reduce the federal
deficit.
