Markets Tick Higher as Speaker Boehner Proposes 'Plan B' on Fiscal Cliff

December 18, 2012 10:53 AM EST
U.S. markets are ticking higher following comments from House Speaker John Boehner regarding fiscal cliff talks.

Boehner proposed a "Plan B" should both parties not be able to come to an agreement before the January 1st deadline. He proposes taxes to go up only on households making $1 million or more per year along with entitlement cuts and a tax reform debate sometime in 2013.

Recently, Obama submitted a proposal that raises taxes on households making $400,000 per year or more, up from initial hopes of households bringing in $250,000 annually.

Speaking in front of GOP lawmakers today, Boehner commented, "For weeks, Senate Republicans — and a growing number of you — have been pushing for us to pivot to a 'Plan B...I think there's a better way. But the White House just can't seem to bring itself to agree to a "balanced" approach, and time is running short. Taxes are going up on everyone on Jan. 1. They're baked into current law. And we have to stop whatever tax rate increases we can. In the absence of an alternative, as of this morning, a 'modified Plan B' is the plan."

Boehner's aides noted that Plan B is called Plan B for a reason: it's a less-than-ideal outcome.

House Majority Leader Eric Cantor plans to hold a vote on the proposal later this week.

The Nasdaq, S&P 500, and Dow Jones Industrials are all higher on the session.

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