In new 'cliff' bid, Obama seeks $1.2 trln in revenue - source

WASHINGTON, Dec 17 (Reuters) - In a fresh offer aimed at

resolving the "fiscal cliff" standoff, President Barack Obama

seeks $1.2 trillion from higher tax revenues, including higher

rates on those earning more than $400,000 a year, a source

familiar with the negotiations said on Monday.

In exchange, the president is willing to agree to $1.22

trillion in spending reductions, including some cuts achieved by

changing the way cost of living adjustments are made to Social

Security and other programs.

"We view this as a good offer that shows we have met the

Republicans more than halfway on spending and halfway on

revenues," the source said.

The offer asks for Congress to increase the national

borrowing ceiling for two years using a parliamentary procedure

proposed by Senator Mitch McConnell, the top Republican in that

chamber.

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