Boehner Offers Obama Tax Rate Boost if Entitlements Cut - Bloomberg

Boehner has finally detailed what he means by entitlement cuts: cutting cost of living increases in Social Security will ensure that the funds will not come close to keeping pace with inflation.

While Democratic leaders united behind Obama’s position following last month’s election, earlier this year Representative Nancy Pelosi of California, the House Minority Leader, and Senator Charles Schumer of New York, the third- ranking Democrat, both advocated an increase on earners making more than $1 million a year.

Last week, Obama also reduced his demand for revenue from tax increases to $1.4 trillion from $1.6 trillion as both sides inched closer to a possible compromise on the biggest stumbling block to a deal.

Lawmakers have said that the two must reach agreement on a framework by early this week in order to move legislation through Congress before the Christmas holiday.

Boehner, in a $2.2 trillion deficit-cutting plan he offered earlier this month, proposed ways to trim entitlements. They included a new inflation yardstick — the so-called chained consumer price index — to reduce cost-of-living increases in Social Security, as well as raising the Medicare eligibility age. Other Republicans have also advocated means-testing, or raising premiums or co-payments for wealthier recipients.