'Fiscal Cliff' Negotiations: Deal Might Be Within Reach

A new offer from the White House prompts talk that a deal is within reach.
1:41 | 12/18/12

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Transcript for 'Fiscal Cliff' Negotiations: Deal Might Be Within Reach
We turn to what may be a major breakthrough in the stalemate over the fiscal cliff. Everyone's taxes go up. Every federal program set to be cut in 14 days. After a new offer from the white house, the two sides may have a deal in sight. Jon karl on capitol hill. House speaker john boehner will talk to his troops about where things stand. Reporter: The speaker will speak with the rank and file republicans about the latest offer from the white house. Although, there are significant differences, we're now seeing, for the first time, real signs of progress. The president is making some significant concessions, offering more spending cuts, asking for less in the way of tax increases. The offer includes $1.2 trillion in tax increases. That's down from $1.6 trillion the president had initially asked for. He is talk about raising taxes on those making over $400,000 a year instead of $250,000 a year. And he is talking about limiting the amount of cost of living increases for social security recipients. And asking for a two-year extension of the debt limit, not indefinite extension of the debt limit. The republicans think it's too much in tax increases, not enough in spending cuts. But the speaker called it a step in the right direction. It seems like a problem of math. Does the white house have anymore room to maneuver? Or is this there bottom line? Reporter: White house officials told me late last night, this is not a final offer. They do consider it a good faith effort to meet the speaker halfway. It's close to a final offer. But there's still wiggle room. And now, they're quibbling about numbers, not fundamental disagreements. Thank you very much. We turn to our abc news

This transcript has been automatically generated and may not be 100% accurate.

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