And the bazaar goes on. According to latest “cliff rumors”, the White House and congressional Republicans are a long way from agreeing on a plan to deal with the “fiscal cliff”. But it seems like some progress is being made.
House Speaker, John Boehner, is offering $1 trillion in higher tax revenue over 10 years and an increase in the top tax rate on people making more than $1 million a year. He’s also offering a large enough extension in the government’s borrowing cap to fund the government for one year before the issue must be revisited — conditioned on President Barack Obama agreeing to the $1 trillion in cuts. The additional revenue required to meet the $1 trillion target would be collected through a rewrite of the tax code next year and by slowing the inflation adjustments made to tax brackets.
In return, Boehner is asking for $1 trillion in spending cuts from government benefit programs like Medicare. Those cuts would defer most of a painful set of across-the-board spending cuts set to slash many domestic programs and the Pentagon budget by 8-9 percent, starting in January.
And the game goes on…