US Fiscal Cliff talks stalled again on Wednesday as President Barack Obama expressed his opposition towards the latest plan put forward by the Republicans who intend to pass their own alternative bill on taxes through the House later today.The so-called “plan B” proposed by House Speaker John Boehner anticipates extending the tax cuts on people with income below 1 million dollars and most probably will not pass through the Senate where Democrats have a majority.
Barack Obama, who made a proposition on Monday to raise the threshold for tax increases to 400.000 dollars, accused the opposing party of delaying the negotiations only to "score a point out of the president" and warned that he would veto the bill.
Neverheless, Rabobank Senior US Strategist Philip Marey believes that the fiscal cliff deal can still be reached on time: “The ideological debate about tax rate hikes has been transformed into a bargaining process about the threshold for tax hikes. So they should be able to find a compromise somewhere between 400K and 1 million.”
