Boehner, Obama 'closer than ever' to 'fiscal-cliff deal' after latest offers
Washington, Dec. 17 (ANI)
Though many differences remain, President Barack Obama and Republican House Speaker John Boehner have never been closer to a deal, numerous congressional and White House sources have confirmed.
But sources familiar with the Friday call from Boehner to Obama said that it was the most productive of the fiscal cliff process.
In that call, Boehner offered to raise marginal income tax rates on households earning more than one million dollars in adjusted gross income.
The tax rate Boehner offered was 39.6 percent, the top rate under the Clinton-era tax code Obama favors, CBS News reports.
This was the first time Boehner has put higher income tax rates on the table and numerous sources said that broke the logjam in the talks.
According to the report, neither side is predicting this outcome, merely acknowledging, in ways they never would have before, that it is theoretically possible to pull everything together that fast.
Boehner's proposal includes one trillion dollars in revenue over 10 years with 440 billion dollars coming from higher tax rates, 500 billion dollars from tax reform in 2013 and 60 billion dollars from changes in benefit and tax treatment tied to the Consumer Price Index, the report said.
According to the report, the rate would apply for 10 years and raise an estimated 440 billion dollars.
Boehner also asked for a reduction in the Consumer Price Index (CPI) adjustment in government benefits and in the indexing of tax brackets.
By Boehner's numbers, this would generate 60 billion dollars in revenue over 10 years, the report added.
Boehner also said his offer to raise income tax rates was contingent upon nearly dollar-for-dollar entitlement cuts - principally to health care programs.