Boehner Abruptly Scraps 'Plan B' Vote in Setback
In the talks to date, Obama is now seeking $1.2 trillion in higher tax revenue, down from the $1.6 trillion he initially sought. He also has softened his demand for higher tax rates on household incomes so they would apply to incomes over $400,000 instead of the $250,000 he cited during his successful campaign for a new term.
He also has offered more than $800 billion in spending cuts over a decade, half of it from Medicare and Medicaid, $200 million from farm and other benefit programs, $100 billion from defense and $100 billion from a broad swath of government accounts ranging from parks to transportation to education.
In a key concession to Republicans, the president also has agreed to slow the rise in cost-of-living increases in Social Security and other benefit programs, at a savings estimated at about $130 billion over a decade. (Read More: How Obama Would Change Social Security Payments.)
Boehner's most recent offer on the broader fiscal cliff allowed for $1 trillion in higher taxes over a decade, with higher rates for annual incomes over $1 million. His latest offer sought about $1 trillion in spending cuts.