GOP proposes new 'fiscal cliff' offer to Obama

Associated Press
House Speaker House John Boehner of Ohio, center, leaves a news conference on Capitol Hill in Washington, Thursday, Nov. 29, 2012, after reporting on his private talks with Treasury Secretary Timothy Geithner on the fiscal cliff negotiations. "No substantive progress has been made between the White House and the House" in the past two weeks, Boehner said. The “fiscal cliff” is a combination of tax increases and spending cuts worth about $670 billion that will take effect at the start of next year unless Congress and the White House agree to postpone or replace them.  (AP Photo/J. Scott Applewhite)
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WASHINGTON (AP) — House Republicans negotiating with President Barack Obama on avoiding the so-called fiscal cliff are proposing to increase the eligibility age for Medicare and to lower cost-of-living hikes in Social Security benefits.

The proposal is a response to Obama's offer last week to hike taxes by $1.6 trillion over the coming decade but to exempt Medicare and Social Security from cuts to beneficiaries.

The GOP plan also proposes to raise $800 billion in higher tax revenue over the decade but would keep the Bush-era tax cuts — including those for wealthier earners being targeted by Obama — in place for now.

House Speaker John Boehner said the GOP proposal is a "credible plan" for Obama and that he hopes the administration would "respond in a timely and responsible way."

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