WASHINGTON (AP) - President Barack Obama has proposed a deficit-reduction package to House Speaker John Boehner (BAY'-nur) that would increase the top tax rates on taxpayers earning more than $400,000, cut more spending from health care programs and add $200 billion more in spending cuts over 10 years to his earlier offer.

Boehner had proposed an earnings threshold of $1 million for higher rates. Obama dropped his demand that individuals making more than $200,000 pay higher rates.

People familiar with the plan said Obama is proposing lower cost-of-living adjustments for Social Security. He also abandoned his request to extend a payroll tax cut - a move that would result in a tax increase for many Americans.

The offer doesn't include an increase in the Medicare eligibility age, a potential sticking point in negotiations.

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