U.S. President Barack Obama and
U.S. House Speaker John Boehner met at the White House on Monday
after the top Republican made compromise on tax-rate increase over
the weekend, raising hopes that they would inch closer toward a
deal.
The 45-minute meeting was a sign of acceleration in negotiations
that seek to avert the year-end spending cuts and tax increases
known as the "fiscal cliff."
They have periodically met face-to-face and talked over the phone
recently as aides of both sides worked to piece together an
agreement.
"The lines of communication remain open, but there is no
agreement, nor is one imminent," said Boehner's spokesman, Michael
Steel.
"The President's proposal is the only proposal that we have seen
that achieves the balance that is so necessary," the White House
spokesman Jay Carney said at a news conference, but refused to
comment on specifics.
As a step to break the budget impasse, Boehner offered Obama a
plan over the weekend, which includes letting tax rates rise for
those who make over 1 million U.S. dollars a year, contingent upon
entitlement spending cuts.
Boehner's latest proposal calls for 1 trillion dollars in new tax
revenue, more than the 800 billion dollars fresh tax revenue he
initially offered.
Obama has insisted on allowing the Bush-era tax cuts to expire on
those earning over 250,000 dollars a year. As a gesture to narrow
the gap between two sides, he scaled back his initial demand on tax
revenue increase from 1.6 trillion dollars to 1.4 trillion dollars
last week and signaled willingness to reform entitlement programs.
"Any potential agreement would not only have to align with the
president's principles, it would require tough choices by both
sides," Carney said.
Economists predict the over-600-billion-dollar combination of tax
hikes and spending cuts, which are set to take effect next year,
would tip the country into recession if the Congress fails to reach
a deal.
