Fiscal Cliff: Obama Makes New Offer

There may finally be an end in sight. President Obama made a counteroffer to avert the fiscal cliff Monday, introducing a proposal that could mean the White House and House Speaker John Boehner are close to reaching a deal. Obama’s new offer now proposes raising tax rates on incomes above $400,000, up from $250,000 in earlier offers. The $2.4 trillion proposal is equally split between revenue and spending cuts, and meets “a dollar-to-dollar demand that Boehner has placed on the scope of the final package,” sources tell Politico. Boehner and Obama reportedly met Monday at the White House, in their third conversation in the past five days to discuss the looming fiscal cliff.