Overview of the White House’s counter-offer to avert the fiscal cliff

SOURCE: Written testimony of Dr. Eric Kingson before the Senate Committee on Health, Education, Labor and Pensions Subcommittee on Primary Health and Aging on Oct. 18, 2011

President Barack Obama spoke to Republican House Speaker John Boehner again last night and presented a counter-offer to avert the fiscal cliff.

The fiscal cliff refers to the combination of tax increases and steep spending cuts that are scheduled to go into effect on Jan. 1st unless Congress and the President reach a deal by the end of the year.

The White House’s latest proposal doubled the amount of spending cuts – including cuts entitlement programs such as Social Security and Medicare – that Republicans have insisted on. It also significantly raised the income threshold for the expiration of the Bush-era tax cuts.

Read more: CBO analysis shows ‘fiscal cliff’ will sharply reduce long-term deficits but lead to a recession in 2013

Overview of Obama’s counter-offer:

  • $1.2 trillion in additional revenue over 10 years, which will be generated primarily by allowing the Bush tax cuts to expire for income exceeding $400,000 a year. The President’s previous proposal would have allowed the Bush tax cuts to expire for income exceeding $250,000 a year.
  • More than $800 billion in cuts to entitlements and discretionary spending programs.

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2 Comments on “Overview of the White House’s counter-offer to avert the fiscal cliff

  1. Pingback: Fiscal Cliff: Alternative or "chained" Consumer Price Index & Social Security | What The Folly?!

  2. Pingback: Fiscal Cliff: Boehner rejects Obama's counter-offer, presents "Plan B" | What The Folly?!

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