December 3rd, 2012
03:39 PM ET

House GOP proposal on fiscal cliff rejects Obama's tax plan

Negotiations on a deal to avoid the fiscal cliff got a jump-start on Monday with House Republicans offering a counter-proposal to President Barack Obama, but continuing to reject his call for higher tax rates on the wealthy.

The GOP proposal would result in $2.2 trillion in deficit savings over the next decade, including $800 billion from tax reform, $600 billion from Medicare reforms and other health savings, and $600 billion in other spending cuts, House GOP leadership aides told reporters.

House Speaker John Boehner called it a "credible plan that deserves serious consideration by the White House."

The move followed a weekend of accusations by both sides that the other was not serious about reaching a deal to avoid the automatic tax hikes and spending cuts scheduled to take effect January 1 - what is known as the fiscal cliff that economists say will damage U.S. growth.

There was no immediate response to the Republican plan, which congressional aides said would be sent in a letter to the White House.

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