House Speaker John Boehner is offering to raise taxes on those with taxable income of a million dollars or more.
Until now, Boehner had maintained his opposition to raising any rates. Instead, he had proposed to raise up to $800 billion in tax revenue over 10 years by limiting tax loopholes and deductions as part of a broad tax overhaul.
But the speaker and House Republicans have come under increasing pressure form a number of Senate Republicans who say they should yield to Obama’s demand on tax rates for the wealthy and then press him for additional cuts early next year in exchange for an increase in the federal borrowing limit.
As part of a broader budget deal, Boehner is still seeking more spending cuts than Obama has proposed, particularly in mandatory health care spending. Boehner has asked for a long-term increase in eligibility age for Medicare, the federal health care program for the elderly, and for lower costs-of-living adjustments for Medicare.