Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

Obama starts fiscal cliff talks as Boehner open to revenue boost

By Heidi Przybyla and Kathleen Hunter, Bloomberg

November 16, 2012 • Reprints

Standard & Poor’s

As the White House talks wrapped up today, U.S. stocks rose. The Standard & Poor’s 500 Index rose as much as 1 percent after leaders emerged from the meeting. The index was up less than 1 percent to 1,355 at 2:46 p.m. in New York after closing yesterday at its lowest level since July 25. The S&P 500 had lost almost 6 percent since the election.

Treasuries rose, reflecting strong demand for U.S. debt worldwide, with 10-year note yields touching a 10-week low. The benchmark 10-year yield fell three basis points, or 0.03 percentage point, to 1.56 percent at 2:24 p.m. New York time, according to Bloomberg Bond Trader prices.

While tax questions will be central in the fiscal talks, the two sides also will consider a down payment on replacing automatic spending cuts should discussions on a broader plan fail, according to congressional aides.

Also in the meeting on the so-called fiscal cliff were Vice President Joe Biden, Treasury Secretary Timothy F. Geithner and White House Chief of Staff Jack Lew.

The president supports higher taxes for top earners mixed with some spending cuts. Republicans want to extend expiring tax cuts for all income levels and are demanding an overhaul in 2013 of entitlement programs and the tax code.

“My hope is that this is going to be the beginning of a fruitful process where we’re able to come to an agreement,” Obama said in his opening remarks today.

Some Alternatives

While insisting on higher taxes, Obama has shown openness in recent days. He and Geithner said rates must increase without specifying that the top rate must return to the 39.6 percent level in effect when President Bill Clinton left office.

Democrats and some Republicans are beginning to talk publicly about a more modest increase in upper-income tax rates.

One idea would be to raise Obama’s $250,000 income threshold for a tax increase to $500,000 or $1 million and increase the current 35 percent top rate to 37 percent.

“Will John Boehner really blow up a deal for a 1 percent point increase above $1 million?” Orszag said. “The administration has made it clear there has to be at least some increase in marginal tax rates.”

39.6 Percent

Yesterday Representative Steve King, an Iowa Republican, said Boehner, an Ohio Republican, could probably get a revenue package through the House that curbs deductions and credits for the highest earners and slightly raises rates above the current 35 percent level, as long as it remains short of the 39.6 percent that Obama wants.

“It may not have to be the 39-and-a-half percent number, it could be something less than that,” King said. “If he can squeeze a little more money out of it by closing loopholes I think he’ll make that deal,” he said, referring to the president.

While it “will be tough” to get through the House, King said, “there might be enough pressure could come on John Boehner that more votes come from Democrats than Republicans.”

Several congressional aides have suggested that in the event talks fail, both parties in Congress are discussing fallback plans for $60 billion to $100 billion in deficit reduction to replace automatic spending cuts set to take effect in January.

<<< previous
Page 2 of 3
>>next >

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Previous
Carbon fee from Obama seen viable with Exxon backing
Next
JPMorgan’s energy trades ensnared by post-Enron enforcement
Related Terms
US Federal Reserve 8527financials 2975Standard & Poor 2008Congress 1894Economy 1513Ben Bernanke 1032Barack Obama 909Nevada 808Senate 610White House 506Bloomberg Television 360Virginia 354Ohio 313Iowa 249John Boehner 174Obama 166Georgia 154Congressional Budget Office 149fiscal cliff 139Kentucky 123Government 121Harry Reid 93Bill Clinton 75Timothy F. Geithner 66Mitch McConnell 54House 42Nancy Pelosi 33Jack Lew 33Joe Biden 27Jay Carney 23office of Management and Budget 15Tom Price 13Boehner 12American Enterprise Institute 8Steve King 5Gerry Connolly 2Alan Viard 1Peter Orszag 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images