White House makes new fiscal cliff counteroffer to GOP

In a new counteroffer to House Republicans on the fiscal cliff, the White House has proposed allowing tax rates to rise for those making over $400,000 a year.

The proposal would raise $1.2 trillion in new revenue over a decade. It also would use an alternative measure of inflation to yield savings on entitlements.

In addition, the White House proposed $400 billion in budget savings from health programs, $200 billion in savings from non-health entitlements and $200 billion in savings on discretionary programs, split evenly between defense and nondefense programs.