Caving: Boehner puts tax rate increases on the table

(CNN) – House Speaker John Boehner on Saturday offered to allow income tax rates for wealthy Americans to increase in exchange for spending cuts, tax reform and entitlement reform in fiscal cliff negotiations with the White House, according to a source familiar with the discussions.

Boehner offered to allow tax rates to go up on American families earning $1 million or more. The president has long demanded rates increase on households earning more than $250,000.