Republicans are proposing their own plan to avoid the "fiscal cliff" at the end of this month. That's when Bush-era tax cuts will expire and automatic spending cuts begin.
The GOP plan would raise the eligibility age for Medicare, lower cost-of-living hikes for Social Security benefits and add $800 billion in higher tax revenue. The White House unveiled a plan last week.
Republican Idaho Senator Mike Crapo says the competing proposals are a first step to finding common ground. “And it’s I think the hope of all Americans that we can come together and find a solution that avoids the potential danger to our country from the fiscal cliff.”
Crapo says he’s heard from economic experts who say without a solution the economy could be in for at least a recession. He says there is a chance December will end without a plan. “Because there’s a lot of speculation about whether politically the President could blame that on the Republican party if it happened and then have a significant political advantage out of it. I hope that is not the kind of thinking that is going on.”
The House Republican plan would keep the Bush-era tax cuts in place for everyone. President Obama wants to end the tax cuts for families making more than $250,000 a year.
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