In new 'cliff' bid, Obama seeks $1.5 trillion in revenue
WASHINGTON (REUTERS) - In a fresh offer aimed at resolving the "fiscal cliff" standoff, President Barack Obama seeks $1.2 trillion (S$1.5 trillion) from higher tax revenues, including higher rates on those earning more than US$400,000 a year, a source familiar with the negotiations said on Monday.
In exchange, the president is willing to agree to US$1.2 trillion in spending reductions, including some cuts achieved by changing the way cost of living adjustments are made to Social Security and other programmes.
"We view this as a good offer that shows we have met the Republicans more than halfway on spending and halfway on revenues," the source said.
The offer asks for Congress to increase the national borrowing ceiling for two years using a parliamentary procedure proposed by Senator Mitch McConnell, the top Republican in that chamber.