House Speaker John Boehner pressed his backup tax plan Wednesday despite a White House veto threat, saying it will be approved Thursday by the GOP-controlled House.
"Then the president will have a decision to make," Boehner said. "He can call on the Senate Democrats to pass that bill, or he can be responsible for the largest tax increase in American history."
Earlier in the day, President Barack Obama threatened to veto Boehner's "Plan B," pressing instead for a deal to avert the "fiscal cliff." He said the two sides were only a few hundred billion dollars apart, and he hoped to get the job done before Christmas.
Wall Street investors didn't like the latest developments. (Read More: Stocks End Lower as 'Cliff' Talks Turn Sour..)
"Plan B" calls for extending tax cuts for people making up to $1 million. It got a boost Wednesday from anti-tax crusader Grover Norquist, who said it would adhere to lawmakers' pledge not to increase taxes. His support increases the likelihood of passage in the Republican-controlled House.