President Barack Obama's latest proposal to end the fiscal cliff crisis does not represent a true compromise, House Speaker John Boehner told reporters on Capitol Hill Tuesday morning.
Obama offered a significant concession to Republicans on Monday, backing down from his position that tax hikes should begin at $250,000 in annual income. The president will now agree to a deal that exempts everyone except for those making more than $400,000 a year.
Also, Obama is now calling for $1.2 trillion in new revenue, down from the $1.6 trillion he proposed last month.
Still, Boehner insists Obama's offer "cannot be considered balanced."
"I made it clear to president that I would put $1 trillion of revenue on table if he were willing to put $1 trillion of spending cuts on table," Boehner told reporters on Tuesday after meeting.
In a move that may draw criticism from his own caucus, he announced a "Plan B" where only the extremely wealthy, those making more than $1 million a year, would be hit with new taxes.
Republicans had been digging in the heels against any tax hikes at all.
"Taxes are going up on everyone on January 1," unless a deal is reached, Boehner said. "They're baked into current law. And we have to stop whatever tax rate increases we can. In the absence of an alternative, as of this morning, a 'modified Plan B' is the plan."
There is no way Boehner's alternative plan would pass both houses of Congress, according to Senate Majority Leader Harry Reid.
"Speaker Boehner's 'plan B' is the farthest thing from a balanced approach. It will not protect middle class families because it cannot pass both Houses of Congress. The Senate bill is the only 'plan B' that can be signed into law and prevent taxes from rising by $2,200 on the average middle-class family," Reid wrote in a statement to the media.
by RTT Staff Writer
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