Republicans counterproposal to avoid the looming fiscal cliff.
By: Kris Schuller
Updated: December 3, 2012
(WFRV) Republicans sent President Obama a counterproposal Monday as both sides try to avoid the looming fiscal cliff. Initial reaction to the GOP offer, shows a deal is still a long way off. It's a counteroffer to the plan President Obama sent to Capitol Hill last week.
The GOP proposal is a ten year plan that cuts the deficit by $2.2 trillion. That includes $600 billion in cuts to health care costs, much of if Medicare and Medicaid. The president has proposed around $600 billion in cuts to all entitlement programs, including Medicare.
Republicans pledge to raise $800 billion closing tax loopholes and ending some deductions, but they still refuse to meet Obama's bottom line - letting tax cuts expire for households making more than $250,000.
"The obstacle remains, at this point, the refusal to acknowledge by republican leaders that there is no deal that achieves the kind of balance that is necessary without raising rates on the top two percent of wealthiest Americans," said Jay Carney of the White House.
The deadline for lawmakers is just four weeks away. If they don't find compromise before January 1st - all Americans will see their taxes go up and big spending cuts. Many in northeast Wisconsin say that must not happen.
"People need to put aside their differences and figure out what's right - what's wrong, put the money in the right place and move on," said one man. "Both sides need to put on their big boy pants," said another.
President Obama declined to answer questions about the GOP proposal while meeting with Bulgaria's Prime Minister. But he did take to Twitter to explain why he believes ending tax cuts for the wealthiest Americans and extending them for the middle class will boost growth. The White House says the GOP plan doesn't meet "the test of balance." Republicans say they're offering a reasonable solution.
The president has said any deal must raise taxes on the wealthy.
