GOP proposes new 'fiscal cliff' offer to Obama

Medicare, Social Security on the table as GOP issues new 'fiscal cliff' offer to Obama

Associated Press
GOP proposes new 'fiscal cliff' offer to Obama
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In this Nov. 30, 2012, photo provided by CBS News Treasury Secretary Timothy Geithner answers questions about averting the "fiscal cliff" on an episode of “Face the Nation” on Sunday, Dec. 2, 2012 Geithner said Republicans have to stop using fuzzy “political math” and say how much they are willing to raise tax rates on the wealthiest 2 percent of Americans and then specify the spending cuts they want. (AP Photo/CBS News, Chris Usher)

WASHINGTON (AP) -- House Republicans negotiating with President Barack Obama on avoiding the so-called fiscal cliff 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."

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