House Speaker John Boehner offered to raise income tax rates on households earning more than $1 million a year in exchange for containing the cost of federal entitlement programs, as part of a deal with President Barack Obama to cut the federal deficit, according to two people familiar with the talks.
The offer, made in a Dec. 14 phone call between the two leaders, marks the first time Boehner has entertained an increase in income tax rates in his talks with Obama to avoid more than $600 billion in automatic spending cuts and across- the-board tax increases set to start next month.
Source: Bloomberg Businessweek. Read full article. (link)