Updated at 7:00 pm ET
Republicans sent a response this afternoon to President Obama’s proposal for massive tax increases to avoid the fiscal cliff, outlining a plan that provides $800 billion in tax hikes – half of what Obama proposed – and $1.4 trillion in spending cuts and benefit reductions.
Republicans appear to have thumbed their noses, for the time being, at Obama’s demand that tax rates increase, forwarding a proposal that actually reduces the top rate while finding revenues through reductions in loopholes and deductions.
Meanwhile, the GOP plan tackles entitlements to a far greater degree that Obama would:
According to the Washington Post:
The plan also seeks $600 billion in health savings. One option, GOP aides said, would be raising the Medicare eligibility age from 65 to 67. It also includes $300 billion in savings from other mandatory programs, such as farm subsidies. And it would save $200 billion by applying a less generous measure of inflation government wide, including to Social Security benefits, which would rise more slowly as a result.
The GOP plan also seeks another $300 billion in cuts to agency budgets on top of the $1 trillion in cuts already enacted. All told, it would produce $2.2 trillion in new savings, or $4.6 trillion when measured against the same yardstick as the president’s proposal.