WASHINGTON (AP) — A big coalition of business groups says there must be give-and-take in the negotiations to avoid the "fiscal cliff" of massive tax increases and spending cuts. But raising tax rates — a White House priority — is out of the question, the group adds.
The homebuilding industry says it won't tolerate even a nick in the mortgage interest deduction. It doesn't matter, industry leaders say, if it's part of a broad, spread-the-pain package designed to tame the soaring debt.
And there's no ambiguity in the views of the top lobbying arm for retirees.
"AARP to Washington: No cuts to Medicare and Social Security in last-minute budget deal" the group's Web site declares. AARP nixes the notion of slowing the cost-of-living formula for Social Security recipients, even if it's part of a big, bipartisan compromise package. And President Barack Obama should drop his idea of raising Medicare's eligibility age, AARP adds.
So much for the notion of shared sacrifice as Congress and the White House face a Dec. 31 deadline to craft a far-reaching deficit-reduction plan. If they fail, the government tips over the so-called fiscal cliff, at least for a time. Nearly everyone's taxes will rise, and federal programs will be whacked. Financial markets might quake, and a new recession could begin, economists say.
In Washington, meanwhile, it's virtually every group for itself, scrambling to protect 100 percent of each tax break and government payout it now enjoys.
America is split down the middle politically, as the last half dozen presidential races have shown. Aside from a few think tanks and civic-minded groups, there's almost no talk of splitting the pain among interest groups, populations and professions in a manner that seems inevitable if lawmakers are to achieve the trillions of dollars in deficit-reduction both parties call for.
The old adage, "Don't tax thee, don't tax me, tax the man behind the tree" was never more in vogue.
Of course, some of the tough talk may be posturing. No one wants to show a willingness to compromise at the start of a long, tough negotiating season.
Still, the adamant positions that major interest groups are taking — and their insistence that sacrifices hit others, not them — underscore the difficulty Obama and congressional leaders face. The tougher a group talks to its members and the public, the harder it is to back down later when a bit of shared pain for everyone emerges as the only path to a deal.
The line-in-the-sand talk begins, of course, with top politicians themselves.
"Raising tax rates is unacceptable," House Speaker John Boehner, R-Ohio, said shortly after Obama won re-election. He seemed unfazed by Obama's campaign promise to let the Bush-era tax cuts expire for couples making over $250,000 a year.
Washington insiders think both men might bend, as they did last year when they nearly struck a "grand bargain" combining major spending cuts with tax increases. Boehner's conservative colleagues rebelled before the package took final shape.
Boehner's House caucus seems slightly less restive now. But outside groups are gearing up to fight virtually every idea being floated to reduce spending or raise revenues. To reach a deficit-cutting package big enough to replace the fiscal cliff, lawmakers will have to stare down these groups, which pour millions of dollars into political campaigns and flood congressional offices with constituents' phone calls.
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