President Barack Obama at Friday’s White House meeting plans to propose a scaled-back package to avert some of the effects of tax and spending changes set to begin in January, a Democratic aide with knowledge of the president’s plans said.
The offer Obama plans to make to congressional leaders includes renewing George W. Bush-era tax cuts for household income up to $250,000 a year though Democrats may be willing to move that income level to $400,000 a year, according to a Senate aide close to the talks. Both aides spoke on condition of anonymity.
Republicans and Democrats remain far apart. Further, winning passage of any agreement by the House and Senate would be difficult before more than $600 billion in spending cuts and tax increases are set to start taking effect in January. Stocks fell for a fifth straight day, the longest slump since September.
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