By TraderVox.com
Tradervox.com (Dublin) – U.S. house speaker John Boehner and president Barrack Obama haven’t reached to a conclusion with three weeks left to avert more than $600 billion in spending cuts and tax increases. Obama insisted on the high income tax rate for high earners, while Boehner insisted on the spending cuts.
Boehner called it a wasted week after talks and didn’t rule out the possibility of accepting a maximum tax rate between the current 35 percent and the 39.6 percent Obama wants for top earners. Obama believed there are possibilities to put the revenue but the speaker opposed the tax rate increases believing to cost American jobs.
The speaker reinstated that the agreement won’t be possible if Obama insisted on his position but Obama’s administration didn’t respond. The president went forward to meet house minority leader Nancy Pelosi, a California democrat; at the White House yesterday to discuss a variety of issues including the budget. Pelosi didn’t rule a compromise on top tax rate but insisted that it is about the money.
Earlier this week Boehner made a request to the president to include $800 billion in new revenue from revisions that would eliminate unspecified tax breaks. The president rejected the proposal which will rise the medical eligibility age and slow social security cost of living increases. Boehner told the president to go back with a counteroffer if he is serious to get a solution for this problem.
U.S.stocks rose, the standard and poor’s index rose 0.3 percent to 1418.07, the highest level since nov.6, while the Dow Jones industrial average gained 81.09 points, to 13,155.13, extending its weekly advance to 1 percent for a third week ,the longest winning streak since august. According to New York Times, treasuries fell for the first time in four days while ten year note yields rose four basis points 0.04 percent to 1.62 percent.
In a television interview this week Obama signaled to make concessions on entitlement programs, which include Medicare but was not expecting republicans to agree to any plan where they’re just betting on the outcome.
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