The clock is ticking for Capitol Hill lawmakers to come to a tax agreement before the standstill sends the U.S. careening over the “fiscal cliff.”
The Jan. 1 fiscal cliff is described as the catastrophic expiration to tax cuts employed by President George W. Bush during his presidency.
If Congress and the White House are unable to come to an agreement, income taxes for the average household could spike as much as $3,500.
Just before Thanksgiving, President Barack Obama met with top economists and policymakers to try and reach an agreement before Congress had a chance to devise their own plan.
In the following week, Obama adamantly announced that he would not sign any bill that made it to his desk that raised taxes for earners making less than $250,000 a year.
But House Republicans rejected the White House’s plan on grounds that it placed too much of the fiscal cliff burden on the most wealthy.
In a deal of their own, GOP House members Monday blazoned a counter offer to the Executive Branch.
They offered $2.2 trillion that would not raise tax rates on upper income Americans but would reform $800 billion in tax reform and $600 billion in health care cuts and $600 billion in cuts to discretionary and mandatory spending.