Tug war

Monday, December 31, 2012 08:11:55 (US) Fiscal Cliff update:
Democrats are said to offer tax concessions – financial press (update)
– Democrats are said to have agreed to raise the income threshold for tax increases to $450K a year (couples) from $250K. The Republicans are insisting on $550K threshold
– Democrats are said want to raise capital gains and dividend taxes to 20% on households over $250K and reduce some allowable deductions
– Democrats offer to maintain the threshold for taxable estates at $5M, with a 35% rate over that level
– Democrats would permanently protect middle-class households from the Alternative Minimum Tax (AMT) and delay the "sequester" automatic spending cuts until 2015. Republicans say they want spending cuts to offset the postponement of the sequester
– Democrats would extend unemployment benefits for a year, extend farm subsidies for a year and avoid a 27% cut in Medicare payments to doctors. The Republicans say they want offsets to these spending cuts. ***Note that overnight, there were reports that Democrats were balking at a last minute Republican demand to include the 'chained CPI' entitlement reform in any 'mini deal'