The short version is: it’s looking more and more likely that a deal will be reached. John Boehner has, as predicted, offered higher rates, not just deduction cuts, on the rich. The goal post of ‘rich’ has been moved to $1,000,000.
Barack Obama has offered to include chained-CPI as a reform to Social Security and other entitlements, changing the way the program calculates inflation over the long term. The Bureau of Labor Statistics has an extensive FAQ page concerning chained CPI.
For a more comprehensive view of the negotiations, lets turn to CNN:
Obama’s latest offer brings the two sides billions of dollars closer to a deal to avert the fiscal cliff, which promises tax increases on income of all levels and across-the-board spending cuts in the new year.
For the first time, Boehner this weekend had offered to accept tax rate increases on household income over $1 million, sources said. Obama, who had stood steadfast at the threshold of $250,000, on Monday offered Boehner a package which would raise rates on household income above $400,000.
The president also offered ground on cuts to discretionary federal government spending. His initial offers had included no cuts; his latest offer cuts of $200 billion, divided evenly between defense and non-defense programs…
…The source told CNN that Obama’s latest offer includes $1.2 trillion in revenue increases on individual income and $1.22 trillion in spending reductions, though Boehner’s office said the math adds up differently.