Boehner calls for new White House fiscal offer

WASHINGTON - House Speaker John A. Boehner said Friday that there has been no progress in negotiations to avert a fiscal cliff of automatic tax increases and spending cuts in January and called on President Obama to produce a new offer.

Hours later, Vice President Biden again laid out the White House's terms: raise the top two tax rates paid by upper-income earners and give the president authority to raise the government's borrowing cap without the approval of Congress.

"Top brackets have to go up. The top rate should go to 39.6 percent," Biden said, referring to the top Clinton-era tax rate. Obama campaigned on raising tax rates on individual income exceeding $200,000 and family income over $250,000, and he's claiming his reelection as a mandate to insist on it. Republicans are offering new tax revenue through closing loopholes and curbing deductions.

Biden allowed that the White House is willing to negotiate over rates - even as he pressed a new administration demand for authority for Obama to unilaterally raise the national debt and avoid a reprise of the debt crisis of a year and a half ago.

"We have to have a mechanism to stop the brinkmanship for dealing with the national debt," Biden said.

Boehner's frustration seems to be mounting. He said that the White House has wasted another week and has failed to respond to Monday's GOP offer to raise tax revenue and cut spending. Obama and Boehner spoke privately by phone Wednesday. Boehner described the conversation as pleasant "but just more of the same."

On Thursday, two Boehner aides met with a top White House official in the Capitol for a discussion that Republicans said produced no progress.

These officials said presidential aide Rob Nabors insisted that Boehner agree to the president's demand for an increase in the tax rate on upper incomes, and to Obama's wishes for presidential authority to raise the government debt limit without approval by Congress. The officials spoke on condition of anonymity because the discussions were private.

Biden spoke with reporters after having lunch at a Virginia diner with seven people identified by the White House as middle-class Americans who would be affected by a tax hike. Repeating an attack line increasingly used by Democrats, Biden said Republicans shouldn't "hold hostage the relief for the middle class" in order to protect tax cuts for upper-income people.

Boehner complained that "there's been no counteroffer from the White House" since the GOP plan was delivered Monday. "Instead, reports indicate that the president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff."

Tax cuts enacted during President George W. Bush's first term are scheduled to expire Dec. 31, automatically boosting tax rates. Obama wants those increases to affect only households with earnings of more than $250,000.