“The Republicans’ insistence on no new taxes was not working,” said a Democratic senator close to the negotiations. “So Republicans have now offered a tiny bit of tax revenue. To be serious, they must offer much more.”
A Democratic aide close to the talks said the latest Republican proposal was unacceptable because it would lower the top tax rate on the most affluent Americans to 28 percent in 2013
, from the current 35 percent. Under existing law, the rate is scheduled to rise to 39.6 percent in 2013.
“This plan would provide the very wealthiest Americans with one of the largest tax rate cuts ever,” the Democratic aide said. “It’s a shell game — a thinly veiled attempt to appear to put revenue on the table while simultaneously removing far more with massive tax cuts for wealthy Americans. This plan is not a solution that Democrats or middle-class Americans would ever be willing to accept.”
Another Democratic aide said the proposal would be “a windfall for millionaires.”
A Republican close to the talks said it was Democrats who had been intransigent, demanding tax increases as part of any deal.