Finally, some real progress
White House says Boehner offered tax increase for entitlement cuts
(Reuters) - U.S. House Speaker John Boehner has offered to raise tax rates on high earners to break the "fiscal cliff" deadlock in exchange for major cuts in entitlement programs, but President Barack Obama is not ready to accept, a source said late Saturday.
While the White House considers Boehner's offer "progress," the source said more remained to be worked out between the two.
Tax rates are a major sticking point in negotiations to avert steep automatic tax hikes and budget cuts set for the end of the year if a deal isn't reached. Republicans have resisted Obama's demand to extend lower tax rates for everyone except top earners, preferring to extend them for all taxpayers.
The Boehner offer was the first departure from the position the House speaker has held for months.
(Editing by Fred Barbash and Todd Eastham)
*Obama is 'not ready to accept' because Boehner wants the cut off to be those earning $1 mil+ instead of $250K and they haven't released info on the rate increase proposed. But the fact the Boehner is willing to go against the Norquist pledge is a major breakthrough IMO. Now it's just about the details since the House Republican leader has agreed to rate increases and the President has put entitlements on the table.