WASHINGTON, D.C. (41NBC/WMGT) - Big news out of Washington D.C. today, House Republicans responded to President Obama's offer to avoid the fiscal cliff by proposing a plan of their own.
The GOP plan calls for an increase in the eligibility age for medicare from 65 to 67. It also calls for a smaller cost of living increase for people who receive social security benefits.
The plan will raise revenue by $800 billion dollars over ten years. It will extend the bush-era tax cuts for all Americans, at least for now.
Part of President Obama's offer included $600 billion slashed from domestic spending.
Former U.S. Congressman, Jim Marshall recently told us health care is one domestic program that's draining Washington's wallet. Marshall says 60-70% of the nation's fiscal problems are tied to health-care costs.
"It's really unfortunate that you know we've recently dealt with health care. It was very painful. We didn't really get to the nub of the problem, but I think that true leaders here will go back and look at health care again and try and figure out some way to restrain health care costs that make sense, a way that will actually work," says Marshall.
Marshall says it's going to be tough to get a deal through because of the republican majority in the house. He's confident a majority of U.S. leaders share his view that across the board spending cuts don't make sense. He believes Congress and the President will cut a deal by January 1st.