Reportedly, the White House did not approve the proposal because it did not demand enough from the nation's wealthiest taxpayers, says CNN.
The GOP plan promises $2.2 trillion in deficit savings over the next decade, including $800 billion from tax reform, $600 billion from Medicare reforms and other health savings and $600 billion in other spending cuts, House Republican leadership aides said.
According to the Washington Post, House Speaker John Boehner and other senior Republicans suggested that a framework proposed by a Democrat, Erksine Bowles, could serve as a starting point for talks.
Republicans say they are willing to extract all the new tax money from households earning more than $250,000 a year, the same group Obama wants to heighten taxes for. But the GOP plan raises the money by taking out deductions instead of raising rates.
Boehner spokesman Brendan Buck said, "If the President is rejecting this middle ground offer, it is now his obligation to present a plan that can pass both chambers of Congress."