Washington may be getting closer to a deal on the fiscal cliff before the January deadline.
President Obama responded to House Speaker John Boehner's latest proposal with a new offer on Monday.
The president now wants to increase the tax rate for those earning more than $400,000 a year; a step down from his initial request to raise taxes on families making more than $250,000.
His plan, however, does not include the $1million salary cap Boehner offered. It also proposes $800 billion in cuts to government programs.
Both plans would also raise taxes on dividends and capital gains from 15 percent to 20 percent and would reduce the number of deductions and exemptions that wealthy taxpayers can claim.
Obama's proposal also would let estate taxes revert to 55 percent on estates after allowance for a $1 million exemption.