U.S. House of Representatives Republican leaders on Monday made their formal offer to President Barack Obama in fiscal cliff negotiation, proposing to cut debt by about 2.2 trillion dollars through spending cuts, entitlement reform and fresh tax revenue.
The GOP plan endorsed by House Speaker John Boehner, House Majority Leader Eric Cantor, and other Republicans, served as a counter offer to the blueprint outlined by Obama administration last week.
The Republicans proposed 800 billion dollars in new tax revenue, 600 billion dollars in healthcare savings, 300 billion dollars in savings from other mandatory spending and 300 billion cuts to discretionary spending.
Another 200 billion dollars would be raised through changes in the way inflation is calculated for a range of federal benefits.
"These reforms are, in our view, absolutely essential to addressing the true drivers of our debt, and we will continue to support and advance them," the Republicans said in a letter sent to Obama.
"With the fiscal cliff nearing, our priority remains finding a reasonable solution that can pass both the House and the Senate, and be signed into law in the next couple of weeks. The best way to do this is by learning from and building on the bipartisan discussions that have occurred during this Congress," the Republicans added.
Last week, the White House presented to Capital Hill its opening proposal on debt reduction, which would raise 1.6 trillion dollars in new tax revenue over the next decade and cut 400 billion dollars on spending of entitlement programs.
The White House proposal was battered as not serious by Boehner. The top Republican lawmaker said there was a "stalemate" of the fiscal talks between Democrats and Republicans, and insisted GOP opposition to raising tax rates for the wealthy.