(MENAFN) White House Communications Director, Dan Pfeiffer, stated that if John Boehner's "Plan B" legislation on " fiscal cliff" is passed, then, President Barack Obama would veto it, reported Xinhua News.
The fiscal cliff, a combination of tax hikes and spending reductions, is expected to take effect on the first day of 2013.
According to the White House, House Speaker John Boehner's proposal would lengthen all of the Bush-era tax reductions, including the lower income tax rates and the lower dividend and capital gains rates, on the first USD1 million of income, at the same time, it would annul tax spending limits even for households with incomes that exceed USD1 million.
Therefore, the backup plan would raise just USD300 billion from the richest people, and the millionaires would get an average tax reduction of USD50,000.
If no deal is reached between the White House and Congress, all of the Bush-era tax rates will end on the last day of 2012, and automatic tax hikes and spending cuts are set to start.
On the other hand, Boehner said that he would shift to "Plan B", a proposal for avoiding the alarming fiscal woes if his efforts to create a broader deal with the White House fail.
The US President offered to accept a deal that lifts the threshold for tax increases for a household's annual income from the USD250,000 he insisted on at first to USD400,000.