(Image source: Bloomberg)

BY CHRISTINA HARTMAN

A little movement in fiscal cliff negotiations. For the longest time, Democrats wouldn’t budge from their demand that a tax rate hike be part of the deal, and Republicans wouldn’t budge from their refusal. Then, Monday night, this:

VIA KOVR: “President Obama is proposing a new deal the John Boehner, increase tax rates for anyone making more than $400,000 a year. And add $200 billion more in spending cuts over 10 years.”

That’s significant because the president had previously said a deal had to include a tax hike on those making more than $250,000.

OBAMA: “I’m not gonna ask students and seniors to pay down the entire deficit while people like me making over $250,000 aren’t asked to pay a dime more in taxes.”

But the president bumping the cut off to $400,000 a year for families is actually not the first concession in recent days.

Over the weekend Speaker Boehner offered a $1 million cut off — which itself was a move toward compromise since it made room for a rate hike. President Obama rejected that offer.

In his proposal President Obama revised what was initially $1.6 trillion in tax increases down to $1.2 trillion. The White House says the president’s plan would cut spending by $1.22 trillion over 10 years.

That last part is debated though, because part of those “spending cuts” are savings in lower interest payments. Still, it’s an offer The New York Times’ Jonathan Weisman says is closer to Speaker Boehner’s. But Weisman notes there are still a few hurdles.

“Mr. Obama is sticking by his request for additional upfront spending on infrastructure and extension of expiring unemployment benefits. … Senior Republican aides made it clear on Monday night that the plan was not what the speaker had wanted.”

President Obama and Speaker Boehner met Monday for their third face-to-face meeting in more than a week.

Obama Makes Counteroffer in Fiscal Cliff Talks

by Christina Hartman
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Transcript
Dec 17, 2012

Obama Makes Counteroffer in Fiscal Cliff Talks

(Image source: Bloomberg)

BY CHRISTINA HARTMAN

A little movement in fiscal cliff negotiations. For the longest time, Democrats wouldn’t budge from their demand that a tax rate hike be part of the deal, and Republicans wouldn’t budge from their refusal. Then, Monday night, this:

VIA KOVR: “President Obama is proposing a new deal the John Boehner, increase tax rates for anyone making more than $400,000 a year. And add $200 billion more in spending cuts over 10 years.”

That’s significant because the president had previously said a deal had to include a tax hike on those making more than $250,000.

OBAMA: “I’m not gonna ask students and seniors to pay down the entire deficit while people like me making over $250,000 aren’t asked to pay a dime more in taxes.”

But the president bumping the cut off to $400,000 a year for families is actually not the first concession in recent days.

Over the weekend Speaker Boehner offered a $1 million cut off — which itself was a move toward compromise since it made room for a rate hike. President Obama rejected that offer.

In his proposal President Obama revised what was initially $1.6 trillion in tax increases down to $1.2 trillion. The White House says the president’s plan would cut spending by $1.22 trillion over 10 years.

That last part is debated though, because part of those “spending cuts” are savings in lower interest payments. Still, it’s an offer The New York Times’ Jonathan Weisman says is closer to Speaker Boehner’s. But Weisman notes there are still a few hurdles.

“Mr. Obama is sticking by his request for additional upfront spending on infrastructure and extension of expiring unemployment benefits. … Senior Republican aides made it clear on Monday night that the plan was not what the speaker had wanted.”

President Obama and Speaker Boehner met Monday for their third face-to-face meeting in more than a week.

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