This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Movement Seen In 'fiscal Cliff' Talks

But it appears clear there is momentum as White House and congressional aides worked through the weekend.

The movement comes as an increasing number of Republicans have called for a tactical retreat that would hand Obama a victory on his longstanding campaign promise to raise taxes on households making more than $250,000 a year. That increase, combined with an increase in the tax rate on investment income from 15 percent to 20 percent, would raise about $800 billion in tax revenue over a decade.

In that context, Boehner's move could be seen as an attempt to get spending cuts linked to the rate increase rather than giving them up and getting nothing in return. Judging from the numbers, Boehner is also willing to allow tax rates on investment income to increase for high-end income and allow the reinstatement of curbs on the personal exemption and the value itemized deductions for high-income earners.

Still, the Boehner offer is sure to cause unrest among many conservative Republicans dead set against raising tax rates at all.

Obama has offered $600 billion in spending cuts over a decade, including $350 billion from federal health care programs and $250 billion from other cuts to domestic programs like farm subsidies and the pension program for federal workers, and through sales of used federal property.

Obama and Boehner met Thursday in a session described as "frank" by both sides. Boehner's offer and a follow-up phone call came the next day, amid increasing speculation that Republicans might move on to a plan B in which they would give Obama a win on tax rates for upper-bracket earners and renew the fight when increasing the government's borrowing cap â¿¿ which needs to be done soon, probably in February.

Boehner's $1 trillion cut proposal would be paired with a comparable increase in the borrowing cap, enough to keep the government borrowing for about a year. But if the cuts are smaller, the debt limit increase would be smaller as well.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs