The Republican counter-proposal: it's good we have a counter-proposal, but the two sides are very far apart. Obama still wants tax hikes, Republicans don't want any. Obama does not want any changes to Social Security or Medicare, Republicans propose a modest change in how inflation is measured to adjust Social Security payments and appear to want to raise the eligibility age for Medicare to 67 from 65.
Still, the markets were little changed on the news. Why? The Street still believes a deal will be made, regardless of how far apart everyone is.