GOP proposes new 'fiscal cliff' offer to Obama - WKOW 27: Madison, WI Breaking News, Weather and Sports

GOP proposes new 'fiscal cliff' offer to Obama

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WASHINGTON (WKOW) -- As congress debates how to cut federal spending, the so-called fiscal cliff deadline looms even closer.

On Monday, House Republicans negotiating with President Barack Obama on avoiding deadline are proposing to increase the eligibility age for Medicare and to lower cost-of-living hikes in Social Security benefits.

The proposal is a response to Obama's offer last week to hike taxes by $1.6 trillion over the coming decade, but to exempt Medicare and Social Security from cuts to beneficiaries.

The GOP plan also proposes to raise $800 billion in higher tax revenue over the decade but would keep the Bush-era tax cuts, including those for wealthier earners being targeted by Obama, in place for now.

House Speaker John Boehner said the GOP proposal is a "credible plan" for Obama and that he hopes the administration would "respond in a timely and responsible way."

Richard Shaten, an economics instructor at Madison College, joins us on 27 News at 5 on Monday to discuss the fiscal cliff and how it could affect taxpayers and businesses.

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