Fiscal Cliff: What Republicans, Democrats Agree on So Far

Jake Tapper on Washington budget negotiations.
2:27 | 12/04/12

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Transcript for Fiscal Cliff: What Republicans, Democrats Agree on So Far
Of course, it was also warm in the nation's capital today despite the big chill between democrats and republicans hurtling even closer to the fiscal cliff. Now, 28 days from now. Abc's jake tapper has news tonight on one thing both sides may agree to change, and it's something that could affect millions of american familie and fast. Reporter: President obama used his first interview since his re-election to drive home his insistence that key to the u.S. Beginning to pay down its debt and avoid going over the fiscal cliff is raising tax rates on the wealthiest americans. We're going to have to see the rates on the top 2% go up, and we're not going to be able to get a deal without it. Reporter: If republicans agree to do that, the president told bloomberg sion, he'll agree to serious spending cuts. Republicans have offered to raise taxes on higher incomes by $800 million not by raising tax rates, but by eliminating some deductions and loopholes. During last year's budget showdown, the president said he wanted to do exactly that. What we said was give us $1.2 trillion in additional revenues, which could be accomplished without hiking tax rates, but could simply be accomplished by eliminating loopholes, eliminating some deductions and engaging in a tax reform process that could have lowered rates. Reporter: Now he does not. He says it will not raise enough revenue. It's not me being stubborn, it's not me being partisan. It's just a matter of math. Reporter: Amidst all this disagreement, one area where there might be potential compromise, raising the age when seniors can start receiving medicare, from 65 to 67. That would help the government save almost $6 billion a year, according to one study, though it would also come at a cost. An average of $700 more in out-of-pocket medical costs for those seniors no longer eligible for medicare and higher costs for employers. You talked about the political cold front here in washington, d.C. How frosty are things? Well, house speaker john boehner did come to the white house last night for president obama's annual holiday party for members of congress, but he did not get in the receiving line to say hello to the president and get a picture taken with him as he has done in previous years and as dozens if not hundreds of members of congress did last night.

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

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