President Obama demanded Thursday that Congress relinquish control over federal debt levels and approve at least $50 billion in fresh spending to boost the economy next year as part of a deal to avert the year-end fiscal cliff, senior Republican aides said.

The proposal, delivered Thursday by Treasury Secretary Timothy F. Geithner to top congressional leaders, also seeks $1.6 trillion in new taxes over the next decade, starting with an immediate increase in tax rates for top earners. It makes no concession to Republicans who want to raise cash by wiping out tax breaks instead of raising rates.

In return, the president offered to find $400 billion in 10-year savings from federal health and retirement programs. 

Read the whole story