Earlier this morning, Speaker John Boehner and the U.S. House Republican leadership held a press conference to announce a new proposal to raise taxes on the wealthy and avoid the so-called “fiscal cliff,” or the steep set of spending cuts and tax increases that will arrive by the end of the year if a deficit deal is not reached. Specifically, Mr. Boehner’s plan would extend the current tax rates on everyone making less than $1 million a year, a sharp jump from President Barack Obama’s own counteroffer yesterday, which conceded a $400,000 ceiling. Mr. Obama had previously stood firm on allowing the tax cuts to expire for everyone making more than $250,000, a number that GOP lawmakers apparently found unacceptable.

“Our hope continues to be to reach an agreement with the president on a balanced approach that averts the fiscal cliff. What we’ve offered meets the definition of balance, but the President is not there yet,” Mr. Boehner began. “What the White House offered yesterday was essentially $1.3 million in new revenues, for only $850 billion in net spending reductions. That’s not balanced in my opinion. So, at the same time that we’re going to talk to the President, we’re going to also move ‘plan B.’” Read More