Republicans tried to push back against the White House in the battle over the fiscal cliff on Monday, offering a plan that allowed for some increase in tax revenues, but also called for more in the way of budget cuts.
The new GOP plan would bring in $800 billion in new tax revenues from broader tax reform over ten years - not by allowing the Bush-era tax rates to expire for more wealthy taxpayers as the White House has proposed. That GOP figure of $800 billion in new revenue is half of the $1.6 trilion that the Obama Administration wants to raise in new tax revenues.
The GOP plan envisions $900 billion in savings from mandatory spending programs, and another $300 billion in cuts to the regular discretionary budget, which is already being squeezed with previously approved cuts over the next ten years.
As with the White House offer handed over to Congressional leaders last week, there are few details or specifics - rather, Republicans argued this is a framework that can lead to a broader deal.
"Again, the American people expect their leaders to find fair middle ground to address the nation’s most pressing challenges," read a letter sent to the President by House GOP leaders.
But the reaction from the White House was much like the GOP reaction last week to the President's latest offer, as the White House immediately denounced the over $2 trillion plan.
"While the president is willing to compromise to get a significant, balanced deal and believes that compromise is readily available to Congress, he is not willing to compromise on the principles of fairness and balance," said spokesman Dan Pfeiffer, as Democrats said the rich would get off easy and the middle class would not.
Still, the mere fact that Republicans had presented a counter-offer - despite the quick rejection by the White House and Democrats in Congress - seemed to at least show some progress in this tax and budget dispute. We'll see if the White House makes the next move.
In their letter to the President, Speaker Boehner and other top Republicans said they could have just come back with a very partisan plan that would have gone nowhere - but they tried to find some middle ground instead.
Both sides again made clear on Monday that they don't want to budge on the Bush tax cuts, as the White House still wants them to expire for those making over $250,000 per year, while Republicans want to extend the rates and cuts for all taxpayers.
Tick, tick, tick.
