*Don’t get too excited, but it looks like House Speaker John Boehner blinked first and there could be a possible deal in the making to avoid the Fiscal Cliff.
Boehner has offered to include higher tax rates on the wealthiest Americans as part of a deficit-reduction deal, a source close to the talks confirmed to CNN on Saturday.
The latest twist in the negotiations, first reported by Politico, indicates a possible breakthrough in the protracted efforts to forge a deal to reduce the nation’s chronic federal deficits and debt.
However, Boehner’s spokesman said no deal had been reached, though communication continues with the White House.
“The lines of communication remain open but there is no agreement, nor is one imminent,” said the spokesman, Michael Steel.
According to the source, who spoke on condition of not being identified further, Boehner proposed allowing tax rates on income over $1 million to return to higher rates of the 1990s while extending current reduced rates for all income up to that threshold.
In return, the Ohio Republican, who is his party’s chief negotiator in the talks, wants spending cuts and reforms to entitlement programs as well as the tax system, the source said.
Read/learn more at CNN.