White House says Boehner offered tax increase for entitlement cuts

WASHINGTON Sun Dec 16, 2012 12:29am EST

Speaker of the U.S. House of Representatives John Boehner speaks to reporters in the Capitol in Washington December 13, 2012. REUTERS/Kevin Lamarque

Speaker of the U.S. House of Representatives John Boehner speaks to reporters in the Capitol in Washington December 13, 2012.

Credit: Reuters/Kevin Lamarque

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WASHINGTON (Reuters) - U.S. House of Representatives Speaker John Boehner has offered to raise tax rates on high earners to break the "fiscal cliff" deadlock in exchange for major cuts in entitlement programs, but President Barack Obama is not ready to accept, a source said late Saturday.

While the White House considers Boehner's offer "progress," the source said more remained to be worked out between the two.

Tax rates are a major sticking point in negotiations to avert steep automatic tax hikes and budget cuts set for the end of the year if a deal isn't reached. Republicans have resisted Obama's demand to extend lower tax rates for everyone except top earners, preferring to extend them for all taxpayers.

The Boehner offer was the first departure from the position the House speaker has held for months.

(Editing by Fred Barbash, Todd Eastham and Paul Simao)

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Comments (12)
Raelyn wrote:
No! No! No! No entitlement cuts. Perhaps Medicare could be managed and run more efficiently and cut out the fraud, but leave Social Security alone, unless you want to create an equal raise in welfare expenses for the elderly.. or — how about cutting out Social Security payments for people with incomes over $500,000 — they do not need it — but the rest of us do.

Dec 15, 2012 10:19pm EST  --  Report as abuse
flashrooster wrote:
“Entitlements.” “Right to work.” “Pro-Life.” Why do we always allow the ridiculous right to define things and inject their propaganda into the mainstream? No cuts should be made without an explanation as to why such a cut is a good idea. Just pointing to the deficit isn’t good enough. For example, raising the Medicare eligibility age won’t save money. It will only hurt Americans. I realize that that’s a good enough reason to do it for Republicans, but it’s not a good enough reason for America.

Dec 15, 2012 11:40pm EST  --  Report as abuse
beancube2101 wrote:
We don’t have any dead lock. We already decided during the election with our votes. He foolishly manufacture a dead lock to himself only. He should announce his own resignation in a week.

Dec 15, 2012 11:42pm EST  --  Report as abuse
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