AP sources: New Obama offer moves toward Boehner - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

AP sources: New Obama offer moves toward Boehner

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FILE - In this Nov. 16, 2012, file photo, President Barack Obama acknowledges House Speaker John Boehner of Ohio while speaking to reporters in the Roosevelt Room of the White House in Washington. (AP Photo) FILE - In this Nov. 16, 2012, file photo, President Barack Obama acknowledges House Speaker John Boehner of Ohio while speaking to reporters in the Roosevelt Room of the White House in Washington. (AP Photo)

WASHINGTON (AP) — President Barack Obama has proposed a deficit-reduction package to House Speaker John Boehner that would increase the top tax rates on taxpayers earning more than $400,000, cut more spending from health care programs and add $200 billion more in spending cuts over 10 years to his earlier offer.

Boehner had proposed an earnings threshold of $1 million for higher rates. Obama dropped his demand that individuals making more than $200,000 pay higher rates.

People familiar with the plan said Obama is proposing lower cost-of-living adjustments for Social Security. He also abandoned his request to extend a payroll tax cut — a move that would result in a tax increase for many Americans.

The offer doesn't include an increase in the Medicare eligibility age, a potential sticking point in negotiations.

Copyright 2012 The Associated Press.

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