Compromise moving in direction of Kaine campaign proposal?

President Obama has proposed allowing the Bush tax cuts to expire above $400,000 as part of negotiations to avoid the fiscal cliff. U.S. Sen.-elect Tim Kaine had suggested during his campaign allowing the Bush tax cuts to expire on income above $500,000 per year, a practical compromise between the position of Senate Democrats and President Obama and the position of House Republicans.

Kaine released a statement on the move toward his campaign proposal on Tuesday:

“For more than a year I have called on Congress to find a balanced approach of cuts and revenues to help get our fiscal house in order. I am encouraged to see signs of progress in the negotiations between President Obama and Speaker Boehner, and while much work remains, I am glad to see the sides moving towards the compromise I have promoted on the Bush tax cuts. Neither side will get everything they want, but if Washington can put the country’s best interest first, they can pass a deal by year-end that will give the markets confidence, give our small businesses certainty, and provide a springboard for a long term solution.”