Boehner Pulls Plan B Amid GOP Disarray

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The latest offers exchanged by Obama and Boehner are roughly $450 billion apart, largely differing on where to draw the line for an income tax hike at the end of the year.

Obama wants to see rates rise on incomes above $400,000 a year, a concession from his earlier insistence on a $250,000 threshold. Boehner, who had opposed any tax rate increase, now says he could agree to a rate hike on earners of $1 million or more.

Both sides also disagree about the size of spending cuts and changes to entitlement programs.

Obama's plan would trim spending by $800 billion over a decade with half coming from Medicare and Medicaid. He has also agreed to limits on future cost-of-living increases for Social Security beneficiaries, something anathema to many Democrats.

But Boehner has said the cuts are insufficient. He seeks $1 trillion or more in spending reductions, citing entitlement programs as the primary drivers of U.S. deficits and debt.

"For weeks the White House said that if I moved on [tax] rates that they would make substantial concessions on spending cuts and entitlement reforms. I did my part. They've done nothing," Boehner said today.

"The real issue here, as we all know, is spending," he said. "I don't think that the White House has gotten serious about the big spending problem that our country faces.

ABC News' Sandy Cannold contributed to this report.

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