Congressional Republicans and the White House moved closer to a US budget deal on Monday night, as Obama made a significant change in his position on tax hikes.
The White House has been calling for raised tax rates on households making more than $250,000 a year, but has now stepped away from this in an effort to move negotiations forward.
This has been reported as a major step in resolving differences over how to deal with the "fiscal cliff". Here's the FT:
US President Barack Obama offered to back away from his position that tax hikes should begin at $250,000 in annual income, delivering a fresh concession to congressional Republicans as talks to avert the fiscal cliff intensified in Washington .
The White House proposal would leave lower tax rates in place for everyone except those earning $400,000 or more a year. Republican leaders had asked for a higher limit but the offer suggests there is a narrowing in the gap between the two sides.
There are still issues for Republicans and Democrats to resolve, including spending cuts to health and pension programmes.