The White House has released a statement rejecting the Republican fiscal cliff counteroffer just hours after they made it. Communications director Dan Pfeiffer explained that the Republican plan "does not meet the test of balance":
In fact, it actually promises to lower rates for the wealthy and sticks the middle class with the bill. Their plan includes nothing new and provides no details on which deductions they would eliminate, which loopholes they will close or which Medicare savings they would achieve. Independent analysts who have looked at plans like this one have concluded that middle class taxes will have to go up to pay for lower rates for millionaires and billionaires.
Here's the Republican proposal - $2.2 trillion saved:
- $800 billion in tax revenue (keeping Bush tax cuts for all)
- $600 billion in Medicare/Medicaid cuts
- $800 billion in savings from federal agencies and programs like farm subsidies and Social Security
And here's Obama's original proposal - just under $2 trillion saved:
- $1.6 trillion in tax revenue (eliminating Bush tax cuts for incomes over $250,000)
- $400 billion in Medicare/Medicaid cuts
- $50 billion stimulus spending
Via USA Today.