On November, 29, 2012, Treasury Secretary Timothy F. Geithner and White House chief congressional liaison Rob Nabors met with the top four congressional leaders, House Speaker John Boehner (R-OH), House Minority Leader Nancy Pelosi (D-CA), Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY)) to discuss solutions to the “fiscal cliff.”
$1.6 trillion in revenue, including $960 billion in immediate increases to the top tax rates and capital gains and dividends, an additional $600 billion in tax increases, a return to the 2009 level real estate tax, a multiyear stimulus package starting with $50 billion in 2013, and a one-year deferral of sequestration spending cuts;
$400 billion in Medicare and other future entitlement reforms to be decided on in the next Congress, and;
Giving the President the power to raise the debt limit without Congress’ approval
Congressional Republicans, including House Speaker John Boehner (R-Ohio), publicly expressed strong disapproval of the proposal.
On December 3, 2012, House Speaker john Boehner (R-OH) and House Republicans presented the President with a counteroffer that calls for:
$1.4 trillion in spending cuts,
including $600 billion from federal health programs and
$200 billion from raising the Medicare eligibility age from 65 to 67, and
$800 billion in tax increases.
The tax increases would come in the form of tax reform that would limit some deductions and loopholes, but not through tax rate increases like the President has called for.
The Republican plan is largely based on a plan initially proposed by Erskine Bowles, a democrat who served on President Obama’s 2010 deficit commission. The White House said that until Republicans are willing to discuss higher tax rates for wealthy Americans, a balanced approach cannot be achieved.