House Republicans have responded to President Barack Obama’s fiscal-cliff averting offer.
The response lacks the one thing the White House insists will be essential to an agreement:
Higher tax rates for the highest-earning Americans.
The Republicans, rejecting Obama’s demand for tax rate increases, proposed $1.4 trillion in spending cuts and $800 billion in new revenue by limiting tax breaks and capping deductions for top earners.
The Republican proposal, contained in a letter today to Obama from House Speaker John Boehner and other Republican leaders, calls for $800 billion in new revenue over the next decade. It would also cut spending on entitlements such as Medicare and Medicaid by at least $900 billion and save another $300 billion through cuts in discretionary spending, according to the letter to Obama.
The House Republican leaders also proposed saving $200 billion by revising the way cost-of-living increases are calculated for Social Security recipients and others, such as retired federal workers.
Boehner had this to say, personally, about Obama’s pitch to raise $1.6 trillion in taxes: It’s a “la-la land offer, which couldn’t pass the House, couldn’t pass the Senate.”