Saturday, November 10th 2012 - 05:08 UTC

Next week takes off the ‘fiscal cliff’’ battle with meeting in White House of party leaders

Newly re-elected President Barack Obama said on Friday the wealthy must pay more taxes under any political deal to avert a looming budget crisis. He said Congress must act against the so-called fiscal cliff, a package of tax rises and spending cuts due early next year.

Boehner, leader of Republican-controlled House of Representatives has had a conciliatory attitude towards Obama since re-election

Obama during his first speech after the elections

Mr Obama said he was inviting party leaders to the White House next week to discuss the issue.

Budget analysts warn the US will tip into recession unless a deal is struck. Obama has repeatedly called for the affluent to pay more, but such a plan is anathema to Republicans.

The fiscal cliff would see the expiry of George W Bush-era tax cuts at the end of 2012, combined with automatic, across-the-board reductions to military and domestic spending.

Talking from the East Room of the White House re-elected Obama said: “If we're serious about reducing the deficit, we have to combine spending cuts with revenue. And that means asking the wealthiest Americans to pay a little more in taxes.”

The president added he was “open to compromise” and new ideas, adding: “I'm committed to solving our fiscal challenges, but I refuse to accept any approach that isn't balanced.”

Tax rises were a “central question” during the election campaign, Mr Obama said, and “the majority of Americans agree with my approach”.

The IMF has repeatedly warned that failure by US lawmakers to reach a deal would deepen uncertainty over the global economy. Investor concerns over the issue have been partly blamed for two straight days of losses on financial markets this week.

Earlier on Friday, John Boehner, leader of the Republican-controlled House of Representatives, held a news conference and suggested “special-interest loopholes in the tax code, both corporate and personal” could be eliminated.

Mr Boehner, who has struck a conciliatory tone to the president since his re-election, also restated his support for “entitlement reform as well as tax reform with lower rates”.

The head of the Republicans in the Lower House also cited a Congressional Budget Office (CBO) report on Thursday which warned the US economy would fall back into recession if no deal were struck on the fiscal cliff.

The analysis projected that the package of tax rises and spending cuts would cut the ballooning US deficit by 503bn dollars through to next September. But could also shrink the economy by 0.5% and cost millions of jobs.

In an interview with ABC News on Thursday, Mr Boehner said: “Raising tax rates is unacceptable. Frankly, it couldn't even pass the House. I'm not sure it could pass the Senate.”

But an Obama official said the president's oft-stated call for tax rises on the wealthy has been vindicated by his resounding victory over Republican challenger Mitt Romney in Tuesday's election.

“[Voters] clearly chose the president's view of making sure that the wealthiest Americans are asked to do a little bit more in the context of reducing our deficit in a balanced way,” said senior White House adviser David Plouffe.

President Obama's position has been that taxes should rise on earnings above 250.000 dollars.
 

8 comments Feed

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1 7skuareoff (#) Nov 10th, 2012 - 05:37 am Report abuse
Thirty Five Million Democrats, Independents and
disaffected Republicans just cast Fifty Six Million
votes to make Barack Obama the very first winner
of the Presidential Edition of American Idol.

When asked about his uh, stirring victory, POTUS
Obama said: “In America, we only count the votes,
Not the voters.”

Vice POTUS Biden chimed in and said: “Hey,
democracy is overrated, anyway.”

The American Idol generation thinks they have a
right to vote anywhere they want, anytime they want,
as many times as they want to, and Democrats,
and Chris Christie, agree.
2 Guzz (#) Nov 10th, 2012 - 08:29 am Report abuse
Go Obama!!!
4 more years!!!!

;)
3 Ayayay (#) Nov 10th, 2012 - 07:42 pm Report abuse
Go Obama!!!

This is all astrological, and polarity ended in July. Boehner says he's finally willing to compromise. Yes to what the two sides are capable of TOGETHER!!!!
4 agent_Scare (#) Nov 10th, 2012 - 08:59 pm Report abuse
US Deficit 16 trillons + 4 more years= 32 trillon = Great Depressiom
2013 unemployment is expected to reach 9.1
Obama is a fool!
5 BAMF Paraguay (#) Nov 11th, 2012 - 02:15 pm Report abuse
Ironic how this “fiscal cliff” is what is exactly needed to prevent a real fiscal cliff. The $16 trillion debt requires sacrifices and no one is willing to make it. My bet is that by the end of Obama era (if it ends in 4 yrs) the debt will easily be over $20 trillion. It just won't be more because of money printing (inflation), but this ends up being a tax increase on everyone as prices go up and savings dissapear.

I actually am extremely happy that OBAMA was elected because it will give the socialists another 4 years to show how well their model works. You see Romney would simply have prolonged the death of the USA while Obama will make it nice and quick. After the GREAT DEPRESSION that is coming, I hope americans will look to more freedom minded leaders.
6 Ayayay (#) Nov 13th, 2012 - 01:08 am Report abuse
Actually, Bamfy, I think Obama is the true fiscal BUDGETER (Romney just knows how to elimate companies for fees). Peace is the biggest aid to our budget. Romney publically said he wanted to extend the U.S. into Iran.

No thanks! We have trillions of dollars to play with if we reduce the military
7 BAMF Paraguay (#) Nov 13th, 2012 - 04:12 am Report abuse
Ayayay, Obama will most likely come to the aid of Israel in a couple months as it decides to attach Iran. Romney would do the same, no doubt. When there is $1 trillion/year being spent on something, try and cut it out to see what happens. You can't mess with someone's cheese without having to fight for it. Deep down Ayayay, do you actually believe that Obama will shut off the war machine from one day to the next?

People say a lot of things just to get elected. There will be all sorts of excuses, but at the end of the day, the buck stops at Presidents's desk.

BTW, Romney, Bush, Obama, Gore.....they are all crap, some just smell and look different.
8 British_Kirchnerist (#) Nov 14th, 2012 - 10:43 pm Report abuse
#1 Will you stop trolling the forums with that racist crap!

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