House Speaker John Boehner
WASHINGTON (AP) -- Big differences remain, but there is finally movement in long-stalled talks on avoiding the "fiscal cliff."
House Speaker John Boehner is offering $1 trillion in higher tax revenue over 10 years and an increase in the top tax rate on people making more than $1 million a year. He's also offering a large enough extension in the government's borrowing cap to fund the government for one year before the issue must be revisited.
In return, Boehner is asking for $1 trillion in spending cuts from government benefit programs like Medicare.
Democrats rejected the offer and say an increase in the Medicare eligibility age is a non-starter.
Boehner's proposal was described by officials familiar with it. They required anonymity because of the sensitivity of the talks.