The tax increase Boehner returned to bargain, Plan B, was the Pelosi Plan. Obama rejected it immediately. Carney spoke about it later: “He is not willing to accept a deal that doesn’t ask enough of the very wealthiest in taxes and instead shifts the burden to the middle class and seniors. The president is hopeful that both sides can work out remaining differences and reach a solution so we don’t miss the opportunity in front of us today.”
CNBC described Reid’s position: “Senate Majority Leader Harry Reid said the proposal wouldn’t pass the Democratic-run Senate. And the White House, which on Monday offered to extend the tax cuts for people making up to $400,000 from its earlier $200,000 for individuals, said Boehner’s plan doesn’t put enough tax burden on the wealthiest Americans.”
Pelosi knew that if all income were taken from those earning above $250,000 annually it would not be enough to run government for a month, this is a political issue. The middle class is next in line, they make up that 98%. Obama’s piggy bank is the private sector, rejecting the Pelosi Plan is equivalent to the first step in cutting off the edges of the private sector pie before working his to the center, the middle class.
Pelosi argues it’s a tactic. Free Beacon quotes Pelosi: “It’s really hard to imagine why they even came up with it, unless they just wanted to prove to their members that unless 218 of them were ready to raise rates, it’s not going to pass. The Democrats are not going to give them that success.”