WASHINGTON (CNN) — President Barack Obama responded on Monday to House Speaker John Boehner’s offer to compromise on tax rate increases with his own compromise on both tax increases and spending cuts, according to a source familiar with the discussions.
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…
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