The president’s offer lowers demands for tax increases and include additional spending cuts, but Speaker Boehner is not satisfied.
…in the new White House offer on Monday, Obama moved off his long-held position that tax rates go up for family income above $250,000 a year. The president is now proposing that threshold be moved to $400,000 in annual income.
Obama originally proposed a deal seeking $1.6 trillion in new tax revenue, but on Monday his offer called for $1.2 trillion, which the White House noted was midway toward the Speaker’s initial offer of $800 billion.
The president also moved in the Speaker’s direction on spending cuts, offering an equal amount – $1.2 trillion – as new revenue, according to sources familiar with the negotiations. But Republican aides disputed that characterization. Under their calculations, the White House offer contains $1.3 trillion in new taxes and about $930 billion in net spending cuts, because of a difference in how changes to the future debt interest payments are treated. Once new proposed spending for infrastructure and extended unemployment benefits that the White House wants are included, the net spending cut is $850 billion, GOP aides said.