The Times West Virginian

Headline News

November 10, 2012

Obama talks compromise but not on tax cuts for rich

WASHINGTON — An economic calamity looming, President Barack Obama on Friday signaled willingness to compromise with Republicans, declaring he was not “wedded to every detail” of his tax-and-spending approach to prevent deep and widespread pain in the new year. But he insisted his re-election gave him a mandate to raise taxes on wealthier Americans.

“The majority of Americans agree with my approach,” said Obama, brimming with apparent confidence in his first White House statement since securing a second term.

Trouble is, the Republicans who run the House plainly do not agree with his plans. Speaker John Boehner insisted that raising tax rates as Obama wants “will destroy jobs in America.”

So began the “fiscal cliff” political maneuvering that will determine which elected power center — the White House or the House — bends more on its promises to voters. The outcome will affect tens of millions of Americans, given that the tax hikes and budgets cuts set to kick in Jan. 1 could spike unemployment and bring on a new recession.

An exhausting presidential race barely history, Washington was back quickly to governing on deadline, with agreement on a crucial goal but divisions on how to get there. The campaign is over, but another has just begun.

The White House quickly turned Obama’s comments into an appeal for public support, shipping around a video by email and telling Americans that “this debate can either stay trapped in Washington or you can make sure your friends and neighbors participate.”

Obama invited the top four leaders of Congress to the White House next week for talks, right before he departs on a trip to Asia.

In laying their negotiating markers, all sides sought to leave themselves wiggle room.

“I don’t want to box myself in. I don’t want to box anybody else in,” Boehner said at the Capitol.

Outside all the new the talk of openness, the same hard lines seemed in place.

Obama never expressly said that tax rates on top earners must return to the higher levels of the Bill Clinton era, leading to speculation that he was willing to soften the core position of his re-election campaign to get a grand debt deal with Republicans. “I’m not wedded to every detail of my plan. I’m open to compromise,” he said.

But his spokesman, Jay Carney, seemed to slam that door. He said Obama would veto any extension Congress might approve of tax cuts on incomes above $250,000.

Obama’s remarks were choreographed so that a diverse-looking group of Americans stood behind him and dozens more were invited to pack the East Room. In the weeks ahead, he plans to pull in the public as a way to pressure Congress.

“I am not going to ask students and seniors and middle class families to pay down the entire deficit while people like me, making over $250,000, aren’t asked to pay a dime more in taxes. I’m not going to do that,” said Obama.

He said voters plainly agreed with his approach that both tax hikes and spending cuts are needed to cut the debt.

“Our job now is to get a majority in Congress to reflect the will of the American people,” Obama said.

About 60 percent of voters said in exit polls Tuesday that taxes should increase, either for everyone or those making over $250,000. Left unsaid by Obama was that even more voters opposed raising taxes to help cut the deficit.

The scheduled year-end changes, widely characterized as a dangerous “fiscal cliff,” include a series of expiring tax cuts that were approved in the George W. Bush administration. The other half of the problem is a set of punitive across-the-board spending cuts, looming only because partisan panel of lawmakers failed to reach a debt deal.

Put together, they could mean the loss of roughly 3 million jobs.

Since the election, Boehner and Obama have both responded to the reality that they need each other.

Compromise has become mandatory if the two leaders are to avoid economic harm and the wrath of a public sick of government dysfunction.

Obama says he is willing to talk about changes to Medicare and Medicaid, earning him the ire of the left. Boehner says he will accept raising tax revenue and not just slashing spending, although he insists it must be done by reworking the tax code, not raising rates. The framework, at least, is there for a broad deal on taxes.

Yet the top Democrat and Republican in the nation are trying to put the squeeze on each other as the public waits for answers.

“This is his opportunity to lead,” Boehner said of Obama, not long before the president said: “All we need is action from the House.”

Obama said the uncertainty now spooking investors and employers will be shrunk if Congress extends — quickly — the tax cuts for all those except the most-well off.

The Senate has passed such a bill. The House showed no interest on Friday in Obama’s idea.

Obama and Republicans have tangled over the Bush tax cuts for years. The president gave in to Republican demands to extend the cuts across the board in 2010, but he ran for re-election on a pledge to allow the rates to increase on families making more than $250,000 a year.

Also lurking is the expiration of the nation’s debt limit in the coming weeks. The last fight on that nearly led the United States to default on its bills.

When asked if he would try to use that issue as leverage, Boehner said it must be addressed “sooner rather than later.”

The national debt now stands above $16 trillion. The government borrowed about 31 cents of every dollar it spent in 2012.

Text Only
Headline News
  • Women in Combat_time.jpg Proposed military plans would put women in most combat jobs

    Women may be able to start training as Army Rangers by mid-2015 and as Navy SEALs a year later under plans set to be announced by the Pentagon that would slowly bring women into thousands of combat jobs, including those in elite special operations forces.

    June 18, 2013 1 Photo

  • 2014 Senate Democrats stress health care support

    Far from reversing course, Senate Democrats who backed President Barack Obama’s health care law and now face re-election in GOP-leaning states are firming up their support for the overhaul even as Republican criticism intensifies.

    June 16, 2013

  • IRS scandals jeopardize funding

    Mounting scandals at the Internal Revenue Service are jeopardizing critical funding for the agency as it gears up to play a big role in President Barack Obama’s health care law.

    June 16, 2013

  • Reaction cool to U.S. arms plan for Syrian rebels

    The Obama administration hopes its decision to give lethal aid to Syrian rebels will prompt other nations to beef up assistance, now that the U.S. has cited evidence that the Syrian government used chemical weapons against its people.

    June 15, 2013

  • Massive storm system fails to live up to fierce billing

    A massive storm system that started in the Upper Midwest brought soaking rains and heavy winds to the Mid-Atlantic on Thursday, causing widespread power outages, flash flooding and extensive flight delays, but still largely failing to live up to its fierce billing.

    June 14, 2013

  • Patriot, union trade jabs during bankruptcy

    Top executives of a bankrupt coal producer and the nation’s biggest miner’s union are trading public jabs over bargaining meant to stave off a strike against a company given a court’s go-ahead to slash health care and pension benefits to thousands of workers and retirees.

    June 14, 2013

  • Storms pelt Midwest with rain, high winds and hail

    A massive line of storms packing hail, lightning and tree-toppling winds began rolling through the Midwest Wednesday evening and could affect more than one in five Americans from Iowa to Maryland before subsiding.

    June 13, 2013

  • OTC morning-after pill sales coming — but not yet

    Don’t look for the morning-after pill to move next to the condoms on drugstore shelves right away — but after a decade-plus fight, it appears it really will happen. Backed into a corner by a series of court rulings, the Obama administration has agreed to let the Plan B One-Step brand of emergency contraception sell over the counter to anyone of any age.

    June 12, 2013

  • Congress briefed on surveillance programs

    Dogged by fear and confusion about sweeping spy programs, intelligence officials sought to convince House lawmakers in an unusual briefing Tuesday that the government’s years-long collection of phone records and Internet usage is necessary for protecting Americans — and does not trample on their privacy rights.

    June 12, 2013

  • Gun control advocates waiting for action

    Six months after the Sandy Hook Elementary School shooting, some of the victims’ families are heading to Capitol Hill to remind lawmakers they are painfully waiting for action, while some of the president’s allies are asking him to do more without any new prospects of legislation to toughen gun laws.

    June 11, 2013

Featured Ads
House Ads