In a big defeat for John Boehner, Republicans have nixed his fiscal cliff bill, "Plan B," because they didn't have the votes to pass it. Discussions among House Republicans devolved into "chaos," Politico reports.
The bill would have raised taxes on incomes over $1 million per year.
Boehner said in a statement that it's now up to Obama and Harry Reid to work out legislation to avoid the cliff.
Obama's current offer would raise taxes on incomes over $400,000 (up from Obama's initial offer, a tax hike on incomes over $250,000). It also involves a controversial recalculation of social security that will involve cutting payments to future seniors.