Progress Reported Since Boehner Offer [VIDEO]
White House and congressional aides have worked through the weekend on ways to avoid the “fiscal cliff,” and there are signs of movement.
There’s word that House Speaker John Boehner is offering $1 trillion in higher tax revenue over 10 years, and an increase in the top tax rate on people making more than $1 million a year.
Boehner is looking for $1 trillion in spending cuts from government benefit programs like Medicare. He’s also pressing for a less generous inflation adjustment for Social Security benefits.
The details come from officials familiar with the offer.
Officials say Boehner’s offer on Friday also includes a large enough extension in the government’s borrowing cap to fund the government for one year before the issue would have to be revisited. But President Barack Obama would have to agree to the $1 trillion in cuts.
One Democratic aide in Congress says there’s apparently been “good progress” since the offer was made.
Millions face higher taxes real soon without fix
WASHINGTON (AP) — While much of Washington is consumed by the debate over tax increases scheduled to take effect next year, big tax hikes have already gone into effect for millions of families and businesses this year.
More than 70 tax breaks enjoyed by individuals and businesses expired at the end of 2011. If Congress doesn’t extend them retroactively back to the beginning of this year, H&R Block says a typical middle-class family could face a $4,000 tax increase when it files its 2012 return in the spring.
At the same time, businesses could lose dozens of tax breaks they have enjoyed for years, including generous credits for investing in research and development, write-offs for restaurants and retail stores that expand or upgrade and tax breaks for financial companies with overseas subsidiaries.
(Copyright 2012 The Associated Press. All Rights Reserved)