Republicans Said to Offer $643B Deficit-Reduction Plan

Republicans yesterday offered a $643 billion deficit-reduction package, a Republican leadership aide said today. Democrats found the offer unacceptable because it didn’t do enough to raise revenue, according to a Senate Democratic leadership aide.

Both aides spoke on condition of anonymity because they weren’t authorized to discuss the negotiations under way among members of the bipartisan deficit-reduction supercommittee. The Republican aide said today the offer was intended as a fallback as the supercommittee looks for $1.2 trillion in deficit cuts before a Nov. 23 deadline.

The Republican aide said the party’s proposal included $640 billion in spending cuts and interest savings, and $3 billion in increased revenues sparked by ending a tax break for corporate jet travel. The aide said it didn’t make changes to entitlement programs like Social Security, Medicare and Medicaid opposed by Democrats.

The Democratic aide said senior aides to House Speaker John Boehner, an Ohio Republican, made the offer yesterday to aides to Senate Majority Leader Harry Reid, a Nevada Democrat. Democrats didn’t find the offer acceptable, the aide said, and complained about Republicans disclosing it to reporters during the talks.

To contact the reporter on this story: Laura Litvan in Washington at llitvan@bloomberg.net

To contact the editor responsible for this story: Robin Meszoly at rmeszoly@bloomberg.net

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