Though many differences remain, President Obama and House Speaker John Boehner have never been closer to a deal, numerous congressional and White House sources confirm to CBS News.
Sources familiar with the Friday call from Boehner to Mr. Obama, placed after the president's emotional statement on the Connecticut elementary school massacre, was the most productive of the fiscal cliff process.
In that call, Boehner offered to raise marginal income tax rates on households earning more than $1 million in adjusted gross income. The tax rate Boehner offered was 39.6 percent, the top rate under the Clinton-era tax code Mr. Obama favors.
This was the first time Boehner put higher income tax rates on the table and numerous sources said that broke the logjam in the talks. In theory, a deal could be struck by midweek.
Neither side is predicting this outcome, merely acknowledging, in ways they never would have before, that it is theoretically possible to pull everything together that fast. But significant obstacles remain.
Here are the broad outlines of Boehner's proposal:
Since the revenue component is the most important, here is a summary of the Boehner offer, as confirmed by numerous sources familiar with the talks.
Within the this tax revenue proposal, there are some snags. The White House doesn't want to credit the $60 billion in CPI changes as revenue increases, thus argues Boehner's under the $1 trillion revenue threshold Obama considers crucial to a deal. More broadly, the White House has not agreed to any CPI adjustment.