Policy Priorities

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Budget Watch: This Week ...

December 17, 2012

Time Running Out to Strike a Deal

With just two short weeks before the December 31st deadline to avert the fiscal cliff, President Obama and House Speaker John A. Boehner met at the White House to discuss their latest effort to reach agreement. Today’s meeting was their third conversation in the last five days, and followed the release of Speaker Boehner’s latest proposal that came over the weekend. Boehner has proposed $1 trillion in new tax revenue, including a raise in tax rates for those making more than $1 million; $1 trillion in cuts to entitlement programs such as Medicaid, Medicare, and Social Security; and an increase in the debt ceiling large enough to get through the next year.  In contrast, the President’s proposal would raise between $1.4 and $1.6 trillion in new tax revenue, including raising tax rates on incomes over $250,000; $400 billion in entitlement cuts; and a solution to the recurring debt limit situation. The White House has already rejected Speaker Boehner’s offer, but Boehner’s willingness to re-engage may have opened the door for deeper negotiations. Here is the latest information on the outlines of a potential deal. 

Check back later this week – we will be closely following developments on the negotiations and their impact on children and families. Click here to view past Children's Budget Watch updates.