From The Hill:
Speaker John Boehner (R-Ohio) and President Obama have exchanged new offers in negotiations over tax hikes and spending cuts in a sign the talks are making progress.
The White House made its offer on Monday, lowering its $1.6 trillion request for new tax revenues to $1.4 trillion over 10 years, according to a senior administration official.
Republicans made a counteroffer Tuesday that remained at $800 billion in new tax revenues.
Boehner and Obama also spoke to one another on Tuesday night in another sign that talks are progressing.
Both sides are saying the other side needs to identify the spending cuts they want. As others have mentioned Republicans should propose basically the spending cuts in Simpson-Bowles.