1. Fiscal Cliff

    Dems Rebuff GOP Counteroffer

    Speaker of the House John Boehner, R-Ohio, talks about the elections and the unfinished business of Congress, at the Capitol in Washington, Wednesday, Nov. 7, 2012. The first post-election test of wills could start next week when Congress returns from its election recess to deal with unfinished business — including a looming "fiscal cliff" of $400 billion in higher taxes and $100 billion in automatic cuts in military and domestic spending to take effect in January if Congress doesn't head them off. Economists warn that the combination could plunge the nation back into a recession.  (AP Photo/J. Scott Applewhite)

    J. Scott Applewhite / AP Photo

    A White House spokesman responded to the GOP's fiscal cliff counteroffer late Monday, saying it "does not meet the test of balance." Erskine Bowles of the Simpson-Bowles deficit commission also criticized the offer. The proposal from House Republicans calls for $800 billion in tax increases, about half of what Obama proposed, which Republicans say can be achieved without raising tax rates. The proposal cuts $4.6 million from the deficit over ten years and saves $600 million from Medicare and other health programs.

    Read it at USA Today