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President Barack Obama on Wednesday suggested that some Republicans had begun to soften their opposition to increased tax rates on the wealthiest Americans, but sharply warned the GOP against looking to tie their budget fight to an upcoming debate over whether to increase the debt ceiling.
Speaking in Washington before a group of corporate leaders, the president suggested some rank-and-file GOP lawmakers might relent in opposing increased income tax rates for the wealthiest earners, meaning Washington is closer to an agreement on the fiscal cliff than principal negotiators' public comments might suggest.
“I think there's a recognition that maybe they can accept some rate increases as long as it's combined with serious entitlement reform and additional spending cuts. And if we can get the leadership on the Republican side to take that framework, to acknowledge that reality, then the numbers actually aren't that far apart,” Obama told members of the Business Roundtable this morning. “Another way of putting this is, we can probably solve this in about a week. It's not that tough. But we need that conceptual breakthrough that says we need to do a balanced plan; that's what's best for the economy; that's what the American people voted for; that's how we're going to get it done.”
Related - First Thoughts: Know when to hold'em, know when to fold'em
Talks toward resolving the fiscal cliff, the combination of automatic tax hikes and spending cuts set to take effect on Jan. 1, seem to have hit an impasse after House Republicans and Obama each offered countervailing proposals to address the looming combination.
In the ongoing fiscal cliff negotiations, some Republicans are starting to think the way forward is to give in to President Obama's demands. NBC's Mark Murray and Domenico Montanaro discuss.
The stalemate involves the question of whether tax rates are allowed to increase for the top earners. Republicans say they are willing to ask the wealthy to shoulder a larger share of the tax burden, but only through ending deductions and loopholes in the tax code.
"Now the revenues that we are putting on the table are going to come from, guess who? The rich," House Speaker John Boehner, R-Ohio, said Wednesday morning on Capitol Hill. "There are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates, which we believe will harm our economy."
Obama, in his appearance shortly following Boehner's press conference, argued that closing those deductions would not raise the type of revenue needed to establish the "balanced" approach on which he campaigned. The president also said that the GOP plan would harm philanthropic and charitable giving.
Time Magazine's Nancy Gibbs, New York One's Errol Louis and MSNBC.com's Richard Wolffe join The Daily Rundown's Chuck Todd to talk about who would get the blame for going over the fiscal cliff and messaging on the cliff.
As the opposing sides race toward the end-of-December deadline, a New York Times report on Wednesday suggested that Republicans might turn, as a fallback position, to authorizing an extension of current tax rates for all but the wealthiest Americans (this was essentially the president's initial request of lawmakers following the election).
But the report also suggested that Republicans might then use an impending need to authorize more borrowing authority, a point at which the GOP might have more leverage, to extract the kinds of spending cuts and tax and entitlement reforms for which Republican leaders have pushed during this fall's fiscal cliff talks.
Recommended: Boehner's fiscal cliff offer under friendly fire from right
Referencing that report, the president sternly warned Republicans against tying another increase in the debt ceiling to a fiscal fight -- a scenario which would risk reigniting the debt talks during the summer of 2011, during which the government was brought to the brink of default due to partisan differences.
"I have to just tell you, that is a bad strategy for America, it's a bad strategy for our businesses, and it's not a game that I will play," Obama said.
Lawmakers on Capitol Hill are currently set to depart for their holiday recess, though Boehner said that he would remain in Washington, ready "at any moment" to sit down with Obama and negotiate.
Charles Dharapak / AP
President Barack Obama pauses as he speaks about the fiscal cliff at the Business Roundtable, an association of chief executive officers, in Washington, Wednesday, Dec. 5, 2012.
But Republicans also clamored for another meeting with the president, expressing their frustration that they had not received any plan in response to theirs from Obama.
"We ask the president, sit down with us, be serious about the specifics and spending so we can stop the wasteful spending in Washington and finally address the problem," said House Majority Leader Eric Cantor, R-Va.
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Wanna put Obama in check? Refuse to raise the debt ceiling. Simple as that. Obama can't spend money he doesn't have.
The debt ceiling must be raised to pay our debts or the U.S will default on it's obligations.
The last time the Republicans played this game, the U.S lost its AAA credit rating.
There is still time left to cut spending, thereby not needing to have ceiling raised.
Its pretty simple. Why does Obama want carte blanche with respect to raising the ceiling when he stated that he will cut spending and will work on paying off the debt?
Don't tell me that the President is lying to us!!!!!!!!
Re-elect....Too bad maybe they should start to make an effort to stop spending. Is that even an option in your mind. I know when my bank balance gets low I tend to quit spending. Why shouldn't the Government do the same with our money?
Obama is a narcissistic dangerous man who does not understand how to lead or compromise. Tax and spend - which he is now saying is the way it's going to be - period will be the destruction of this Nation.
No sane economist says we can continue on this path and Obama is hell bent on staying on this path.
There will be no more rich nor middle class to tax very soon.
The largest private sector employer in the United States is Wal-Mart.
That should scare the Hell out of any rational person.
Should the GOP cave to the Boy King, they will have lost me forever - it's not that I'll begin supporting the Black Messiah, but I won't/can't support the Republicans anymore. We must stop entitlements for folks who "expect" a free ride - The House needs to grow some and stand their ground.
Absolutely !!!!
Polls are running at least 60% AGAINST teapublicans....
They'll get blamed...
They'll lose even more congressional seats in 2014, and 2016....
Then this country can finally begin to move forward...
Onward my drooling little teapublicans !!!! Onward !!!!!
Polls. BS Ride that rocket without a helmet and remove yourself from the gene pool. You will not last 3 days if this Nation goes south anyway - your idiotic name calling rants only show the bottom of the barrel voters that helped get bammy back in.
k1200rs......i didn't know little limp wristed libtards even rode motorcycles.
Typical Rethuglican,rides a crotch rocket. That bike is a piece of junk. It's like riding a vibrator. Or is that why you ride it. The only way you can get it up.
Uh! The Republicans are morons. They've killed our economy. Don't want to do anything to fix it. What's that all about any way. Hate the Black man? Tar and feather the liberal? Hey, we have a bunch of 3 pointed hat people out there that don't have a clue about what is good for the gander. I'm just asking but on an international level, the edcational testing that has been done that kind of place us pretty far down the slope, whether or not that was high school seniors, all grade levels or what? It would be interesting to know. If their leaving out all the drop outs in the Red States, we might be showing higher than we deserve.
This is why conservatives cannot have an intelligent conversation with a liberal. "The Republicans are morons. They've killed our economy. Don't want to do anything to fix it. What's that all about any way. Hate the Black man? Tar and feather the liberal?" Really? When Republicans were in charge of the House, Senate and White House, Unemployment went down from 6% to 4.6% in four years and the deficit ran between $318B - $413B. Democrats took over the House in 2008 and White House/Senate/House in 2010. In those four years, the Unemployment rate went up to 9.6% and the deficit went up to $1.293B. If all you can do is hate anyone who does not agree with you, you are not going to be part of a meaningful discussion of what needs to be done to resolve the problem.
They need to fix the alternative minmum tax NOW otherwise 28 million Americans will get pulled into the AMT mess and pay MUCH higher taxes - and this is for 2012 ! The AMT (if not "patched") will cut across the middle class like a sucker punch out of left field.
This AMT does just affect "wealthy" Americans, it will really hurt much of the middle class. This should not be a bipartisan issue.
How can Congress be so irresponsible ? Don't answer that.......
Well,well well, you are starting to see you were duped, huh?
Oh - I was posting in 2010 that the 'rich' will be the middle class in a new york second if Obama got back in.
He did and I can now say I told you so.
One can only hope you are really right. Did you really say that?
I think if the politicians in Washington DC had the same health insurance and retirement policy as other Federal employees, that would do much for easing the debt. Why should they get free healthcare for the rest of their lives for serving 4, 8 or 30 years? Why do they get special treatment over other Federal employees? If they had to depend on Medicare and Social Security they would fix it fast.
Sorry but the tax increase on the wealthy will not make a difference in our debt. It is nothing but a Liberal talking point to get the sheeple to believe they are actually trying to do something. Until the entitlements are addressed and spending is cut we will always be hovering on the fiscal cliff. I say let the liberals have their way and when the snit hits the fan they can own it all!!!!
Letting the top tax rate expire will save $950 Billion in deficit reduction and interest payments over 10 years.
The earned benefit programs do not contribute to the deficit and are currently solvent.
Total BS....raising the taxes on the wealthy will fund our government for 9 days...and medicare and social security are not the entitlements that need to be addressed. It is all the other incentives the government shells out to keep people poor and voting democrat.
Boehner: "There are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates, which we believe will harm our economy."
But limiting deductions and closing loopholes employed by the wealthiest Americans has EXACTLY the SAME effect on taxpayers and the economy as increasing tax rates on them.
Boehner is either the most illogical person in Washington or is scared of Grover Norquist.
By all means raise taxes but do nothing about unnecessary spending. oh! and keep ignoring the debt while your at it. The Dems will not be happy until this country turns into a third world country. And from the look of things it will not be long until it happens.
I say screw the GOP..lets go over the cliff then the playing field is leveled !As for healthcare the congress and the senate should never sit on any committee once they have taken the bribes ...I mean donations !
The Republican Party needs to come up with something specific in regards to Entitlement Reform and spending cuts to present to the President to negotiate. It's Congress who has the responsibility when it comes to revenue and taxing authority.
There's no need to sit down with them. The Bush Tax Cuts are "TEMPORARY"...This is what THEY (GOP) agreed to. They were always set to expire. They should expire while the rest of our taxes stay low in order for consumers to spend money. Raise the tax on the top 2%, keep them low for everyone (people and businesses) making up to 250K.....Negotiate on closing "specific" loopholes and deductions next year when the new congress is in, negotiate on simplifying the tax code next year when the new congress is in and deal with military spending cuts. Done...Now sign it and happy holiday....
The registered voters have elected President Obama 2012. And one of the reasons that the GOP presidential nominee has lost is the problem of the tax rate for the middle class which is higher than the top 2% taxpayers.
The middle class has sent the message to the GOP-led Congress to fix the tax rate in which it is supposed to extend the tax cut for the middle class but to raise the tax rate to the top 2% taxpayers.
Hope that the GOPers are not going to challenge their own records in 2016 or any other senate /house race.
you are a fool- rich people have dividend income-14% on money that they already paid the same tax as you- you are an obtuse minion who knows nothing of taxes
Yes, let's tax every couple earning more than $250k because you should have the money instead. Let them throw that engineering or law degree away. Stop working 60 hour plus weeks. That is what all of you are talking about when you bandy about the 2% top income. That is EARNED income ...not the same as Buffett or Gates.
Obama gets to punish billionaires and millionaires making up for his poor childhood- I carry big club like old ancestor-and beat up rich guy mongo-mongo me big man in Congo- rise of the Neanderthals starring He-insane Obama casting now at Gooney Cluney's
Still mad willard lost eh??? LOL!!!
How amusing....
Oh... the angry, fat,. white male demographic will shrink by another 2% points by 2016...
Good luck.....
Free,
Were the billionaires and millionaires being beat up during the Clinton years? I don't quite understand your logic.
sorry I left the US for a less taxed nation- have fun in your entitled mess- when you run out of millionaires you might have to work yourself- or wouldn't that be fair?
Free,
Can you answer my question please? Thanks.
Obama will get his way and add to the US unemployment so more people go on foodstamps- the Chicago Cowboy rides off into the sunset and pens another book of fictional embellishments
Free,
Can you answer my question please....you haven't done so yet. thanks.
I always enjoy reading the posts here from the lunatic left.This group seems to have no idea,how business works,economics or how the national debt will affect everyone.Obama's spend, spend and more spending needs to come to an end.We do need a more fair system were everyone pays a flat rate with no deductions.The federal government should be cut by two thirds and stop benig a nammy from cradel to grave!
Pigskin,
Start naming the government programs you'd cut.
Hopefully the Chinese will continue to loan us money at very low interest rates. If rates go up, we are boned.
This has to be driving Norquist nuts
If the GOP wanted to close the loopholes that only the wealthy can use and capping deductions on stuff they use like a $70,000 dancing horse then I am all for it but what they really want to do is eliminate deductions that the middle class use like the mortgage interest deduction, that way it falls on all of us. They refuse to be honest about what they mean by eliminating deductions. Lets do a study of the top 1% tax returns and see what they are deducting that the rest of us cannot do and eliminate those deductions.
should the rich pay for the poor families who have 10 children- and are 5th generation welfare- you may want to study that and see what that costs- you are looking at the wrong end of the spectrum- you want the rich to be responsible for the poor- hello Socialism 101- thank God I left that rat trap of a nation
Bring on the cliff!
Raise the taxes on everyone. Cut spending. THEN PAY DOWN THE DEBT!
I pay enough taxes as it is. I can't believe you morons want to pay more in taxes. Hand over your money to IRS if you want but NOT MINE.
For all of you fools that believe that taxing the rich will save our economy have another thing coming. That is not the answer. The key to this whole problem is that our illustrious government, lead by the rock star Obama, can not and will not control or cut spending. He thinks in his little world, that rich people OWE this country a little more cash to pay for HIS problems. By taxing the very people that generate a lot of lower tier wealth around this country, will only incur one thing...pass along the tax in higher prices for consumer goods. Any fool knows that these people didn't get rich in politics. They got rich on working hard in business for years. Obama has to know that his tax hike will trickle down to the middle class who buy from the same people he's taxing harder. Also, it will definitely not be a job creator. It will cut jobs across the board. He's the man who made surrealistic promises to his band of goo goo eyed followers and they will be hit hard in their wallets also. Oh, plus their kids will not get a high tech job because the people who own those companies, are being taxed too much to add employees. 'nough said.
4 more years of this C-----------Stuff.
E Gas,
This is all Obama's fault?
Actually, only two more years of this insanity and then Americans can vote the rest of the Republican Party of "no" out of the House of Representatives! John Boehner had his chance to tame the Tea Party. He has failed to do so! The Republican Party is no longer viable, considering the collection of bigots, racists, fascists, war mongers, and religious zealots they have gathered together under their buttcheeks!
Tax The Rich and watch what happens to the cost of rents and prices of products. Also the so called rich are not all rich . I do not consider a couple making $250,000 ayear to be rich. The rich pay 90+ % of all taxes now. How much do you want them to pay????
Obama creates hate by referencing corporate jets and yachts. Who do you think builds and maintains those little items he hates so much? Obama would rather pay welfare and unemployment than to give people jobs. People who work for a living and actually produce a product will most likely not vote for a democrat. Therefore creating jobs is not in the liberal's best interest.
Work,
How did we survive during the Clinton years?
Not only did we survive, we thrived during the Clinton years, or are you to young to remember.
The GOP doesn't care about the 47% of Americans that do not support them. The GOP only cares about the 2% that pay for their campaign financing, and the advertisers and media and the ill-informed voters who support them, like Rush Limbaugh and Fox Entertainment News and the Tea Party, who just killed an International Treaty that is based upon our American Disabilities Act (passed by George Bush 1) that asks other nations to provide access ramps and lowered curbs and lifts on buses for disabled folks! Bob Dole even showed up at the vote in his wheelchair, to help push for passage of the treaty. 38 Tea Party maggots voted no, while 61 Republicans and all Democrats voted for passage of the treaty!
Does anyone honestly believe the Tea Party will allow the rest of the GOP to do anything worthwhile as long as the Tea Party from Heritage University can pop out the brainwashed like they were from an assembly line in Communist China?
Get real. We are going over the cliff. No matter what Boehner does, Mitch McConnell and his fairydust crowd in the senate will filibuster it anyway.
The GOP does not believe in evolution! Therefore, they do not evolve! We must vote them out, after the next two years of insanity, to finally rid ourselves of the Republican menace that poses nothing but anguish for our beloved country.
Jack, election is over and so are your election talking points. SHUT UP!
What's wrong Dan? Does my "truth" still not apply? Has anything changed in the Republican Party? Didn't we just see 21 more old white men added to your corps of anguish? With your side of the aisle, there is no end to the campaign. Your side never evolves!
Jack, no reason to waste my time on you. Just keep blaming the rich and hope Obama will house and feed you for 4 more years. As for as your "truth", if it was 100% truthful I would be in agreement with you. But it simply is not.
Better to be fed food from Obama than fed sh$$ from Rethuglicans.
Anyone who doesnt see that taxes must go up, is fooling themselves. The debt isnt going to pay itself off.
Are spending cuts needed too? Absolutely. Its just a matter of priorities, and the will of the people. But as far as the tax question goes, the people voted for Obama and his tax hikes and balanced approach.
Its time the GOP get out of the way, and let Dems have a kick at the can. Without interference or stone-walling. If the Dems fail, you GOP vindicated. If they succeed, everyone wins, except for a few GOP career politicians.
Freedom4Everyone is your handle yet you want the government to take and waste EVEN more of OUR money. That is not FREEDOM. Are you people as stupid as you sound.
Living here isnt free, get used to it.
There are no taxes in Somalia, or government. No law and order, or protection, or services either.
Yep! you are stupid.
Lets PUKE for the REPUKES and their wacko brain Tea Crappers. Time to get in line with the MAJORITY in this Nation. Who is wasting time the HOUSE of SLACKERS of coarse!