Washington, DC, United States (4E) – President Barack Obama and House Speaker John Boehner exchanged new proposals on Tuesday through telephone as they discussed plans on how to avoid the “fiscal cliff” or automatic tax hikes and spending cuts looming at the end of the year.
The Obama administration’s latest offer includes new revenues of $1.4 trillion, which is lower than the $1.6 trillion it initially proposed. This level of revenue, however, is described by one senior Republican official as laughable and no more acceptable than the first offer.
The White House has also proposed a plan to the GOP that would include an overhaul of the corporate-tax code in an attempt to reduce the deficit, a move to win the private enterprises as the government debate on the budget intensifies.
The impact of the revamp on the companies’ overall tax burden remains unclear. GOP officials actually regard the plan as merely a tactical offer, and not one that could help both sides reach a deal.
Despite the two leaders’ phone conversation and the exchange of proposals suggest some movement toward reaching an agreement, it is still unclear whether any actual progress can be made.
Boehner later hit Obama for not offering specifics on the spending cuts that the Republicans would find acceptable to avert the “cliff” that is set to kick in next year.