Boehner Moves Closer to Obama Position on Tax Rates, But Gap Remains

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Analysts see reasons to believe House Republicans and President Obama are getting closer to a deal, pointing to progress toward an agreement on tax rates and savings. House Speaker Boehner ups his offer to President Obama, proposing for the first time to accept an increase in the top tax rate to 39.6 percent on individual income that exceeds $1 million per year, according a source familiar with the talks. The offer would raise roughly $400 billion in new revenues from those with an income of more than $1 million—a compromise position that Boehner laid out to help insulate small businesses that pay taxes through the individual side of the tax code from the higher tax rates. Boehner is also seeking $1 trillion in entitlement spending reductions that would be needed to offset an increase in the nation's statutory borrowing limit.

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