House Speaker Boehner submits a counteroffer to President Obama, proposing to use tax reform in 2013 as a way to raise $800 billion in new revenues rather than allow the top marginal income tax rates to rise in January. The offer represents a shift away from the previous Republican position that tax reform needs to be done in a revenue-neutral way and is intended to be a concession to Democrats' demands that high-income individuals be asked to pay more, though not necessarily from higher marginal income tax rates. In fact, aides to Boehner say Republicans will seek comprehensive tax reform that can still cut tax rates from their current levels. The details of how low tax rates can go and what sorts of tax expenditures can be eliminated to still produce $800 billion in added tax revenues would be worked out in future discussions on tax reform, aides say.
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