FISCAL CLIFF: Obama concedes $400k bottom for rate increases, $1.2 trillion in spending cuts

Looks like Obama and Boehner are getting closer to a political deal that won’t do anything to solve our problems:

TELEGRAPH – With the Jan 1 deadline for a deal looming, Mr Obama offered a major compromise on his demand to raise tax cuts on the rich.

The latest plan would raise the threshold at which higher rates would come into force to those earning $400,000 a year and above, up from the $250,000 threshold on which Mr Obama had earlier insisted.

The president’s new proposal offers $1.2 trillion in revenue hikes and an identical level in spending cuts, a source familiar with the plan said.

Details of a new offer emerged after Mr Obama and Mr Boehner held their latest meeting, a 45-minute encounter at the White House, raising hopes that a deal can be struck and put before Congress before the year-end deadline.

Mr Boehner said the offer was flawed but “positive”.

Any movement away from the unrealistic offers the president has made previously is a step in the right direction,” said Boehner spokesman Michael Steel, while disputing the mathematical assumptions of Mr Obama’s offer.

“A proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced,” Mr Steel said.

“We hope to continue discussions with the president so we can reach an agreement that is truly balanced and begins to solve our spending problem.”


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