* Boehner’s budget ‘Plan B’ collapses. Janet Hook – The Wall Street Journal. House Speaker John Boehner, facing a rebellion in his party’s conservative ranks, abandoned his own plan to avert tax increases for most Americans Thursday night, throwing Washington’s high-stakes budget negotiations into disarray and bringing the prospect of tumbling over the fiscal cliff into sudden focus. Link
Democratic-voting blue states could face a greater economic fallout from any fiscal cliff resolution than their Republican red state brethren, according to a Dec. 17 white paper from municipal bond research firm eBooleant Consulting.
* Tax impact for small business hard to gauge. John McKinnon – The Wall Street Journal. The latest budget offers exchanged between the White House and Republican leaders would raise tax rates on a tiny fraction of small-business owners, but would still affect a sizeable portion of business activity, studies show. Link
* Boehner’s backup tax plan shakes up ‘fiscal cliff’ negotiations. Paul Kane and Lori Montgomery – The Washington Post. House Speaker John A. Boehner veered off the bipartisan course he had been charting toward a broad tax-and-entitlement deal with President Obama and instead Tuesday pushed a GOP package to extend tax cuts for income up to $1 million. Link
* White House, nonprofit groups battle over charitable deductions. Jerry Markon and Peter Wallsten – The Washington Post. The White House and the nation’s most prominent charities are embroiled in a tense behind-the-scenes debate over President Obama’s push to scale back the nearly century-old tax deduction on donations that the charities say is crucial for their financial health. Link
* Tax offer for firms pits big vs. small. John McKinnon – The Wall Street Journal. The Obama administration’s offer to revamp the corporate tax code as part of the “fiscal cliff” budget talks raises the prospect that tax rates for large and small companies could diverge significantly. Link
* Corporate taxes on table in cliff talks. Damian Paletta and Janet Hook – The Wall Street Journal. The White House has told Republicans it would include an overhaul of the corporate-tax code as part of any deal to reduce the deficit, people familiar with the talks said, a move to court business groups as budget negotiations intensify. The White House’s corporate-tax suggestion wasn’t specific, according to officials. Link
* Boehner’s test: Keep GOP ranks behind him. Patrick O’Connor – The Wall Street Journal. House of Representatives Speaker John Boehner’s strategy, and his future as speaker, will get tested between now and year-end as Washington wrestles with negotiations designed to avert tax increases and spending cuts due to begin in early January. Link