The "fiscal cliff" talks have reportedly stalled because the latest Republican proposal involved permanently extending the Bush tax cuts, according to a CNN source.
From CNN's Dana Bash:
One of the reasons Tuesday night's conversation between President Barack Obama and John Boehner did not go well was because the GOP House speaker sent the White House a fiscal cliff proposal calling for a permanent extension of Bush-era tax cuts for all Americans, including for incomes in the top 2%, a Democratic source said Wednesday.
Democrats took the GOP counter offer to mean that tax reform cannot result in any marginal rates higher than current law, according to the source, who said Boehner's proposal was a "sign" to Democrats that "Boehner and the GOP are unwilling or unable to do any sort of deal that can pass the Senate or be signed by the president."
That may be why Boehner told Republicans not to make plans over the holidays.
Obama has maintained that any deal will have to include an increase of taxes on the top 2 percent, and, according to recent polling, the majority of voters are with him.
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