WASHINGTON House Speaker John Boehner will push a budget “plan B” measure that would include tax increases on income of more than $1 million, while continuing to negotiate with President Barack Obama, a Republican aide said.
The plan is consistent with Boehner’s latest offer to the president, according to the aide, who sought anonymity to discuss the private negotiations.
Boehner and Majority Leader Eric Cantor are giving House Republicans an update on the negotiations during a private meeting Tuesday.
In a statement, White House spokesman Jay Carney said Boehner’s “Plan B” approach can’t pass the Senate. And, he said, it does little to address the nation’s fiscal challenges. Carney said the president is willing to continue working with Republicans to keep from going over the "cliff."
On Monday, Obama lowered his tax revenue demand by $200 billion and offered to start tax rate increases at $400,000 in income instead of $250,000, moving closer to a budget deal with Boehner.
Obama’s revised plan would raise $1.2 trillion in taxes in the next decade and cut $1.22 trillion in spending, said a person familiar with the talks. Obama wants a large enough debt ceiling increase for the next two years and would accept a new inflation yardstick that would reduce Social Security cost-of-living increases, said the person, who sought anonymity.
A deal about halfway between the most recent offers could include $1 trillion each in tax increases and spending cuts, and allow tax rates for top earners to rise in 2013.
In exchange, Obama would accept some up-front spending cuts, and other scheduled cuts would be canceled. Congress would pursue broader changes next year against the threat of tax increases and spending cuts in 2014.
Read tomorrow's Arkansas Democrat-Gazette for full details.