Obama seeks to avoid fiscal cliff

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WASHINGTON (AP) — President Barack Obama is lobbying business and labor groups to support $1.6 trillion in new revenue to avoid an impending fiscal cliff, telling the two sides he remains committed to requiring the wealthy to pay more in taxes.

Obama was meeting today with about a dozen business executives as the White House and Congress face a series of expiring tax cuts and across-the-board spending cuts scheduled to take effect because lawmakers failed to reach a deal to reduce the federal debt. Business groups want an agreement before the end of the year, warning that the uncertainty could roil the financial markets and harm the economic recovery.

White House press secretary Jay Carney said the president would bring to the table a proposal for $1.6 trillion in new taxes on business and the wealthy when he begins discussions with congressional Republicans, a figure that Obama outlined in his most recent budget plan. The targeted revenue is twice the amount Obama discussed with Republican leaders during debt talks during the summer of 2011.

Carney said the figure, combined with $1.1 trillion in spending cuts already signed into law, would reduce deficits by $4 trillion.

The White House meeting with CEOs follows a gathering of labor leaders and liberal groups Tuesday in which participants said Obama remained clear that he would push for his campaign pledge of making the wealthiest Americans pay more in taxes.

Failure to act would lead to spending cuts and higher taxes on all Americans, with middle-income families paying an average of about $2,000 more next year, according to the nonpartisan Tax Policy Center.

Comments

oneStarman 1 year, 5 months ago

JUMP! -If the ONLY way we can Reduce BLOATED Military spending and End the subsidy of Billionaires by higher than necessary Taxes for the Middle Class - we should JUMP Off the Cliff! It s Not Like we don't have a Bungee cord tied to Our foot. The GOP may have sworn to the Norquist it will NEVER raise taxes but it can LOWER them for the 99% that the President will not VETO. OR we can make that same deal NOW - Its Up to Speaker Boehner.

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namvet60 1 year, 5 months ago

Sorry it's not up to the House anymore - it's up to the non-existent Senate and a Star struck President who thinks he is the Messiah in a burka!

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marketinsider 1 year, 5 months ago

Obama says $1.6 trillion in new revenue in the next ten years. That is $160 billion a year. Obama has proposed cuts of $100 billion a year at most. So he has come up with cuts and revenue increases totaling $260 billion a year. Obama borrows $1,200 billion a year (Obama's current annual deficit). Are any journalists, college professors, reporters, economists, pundits, or voters even the slightest bit interested in where he is going to get the other $940 billion? The fact is, even if Obama gets what he is proposing, he will still need to go to the bond market and borrow another $trillion dollars every single year for the next ten years, which the bond market will not be able to support.

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wallyworldguy 1 year, 5 months ago

$1.6 trillion in new taxes on business and the wealthy.

Well that should give the economy a big boost.

Quiz: If obama got his way and was able to tax the rich like he wants, how much would that bring in. a: enough to pay off the national debt b: enough to pay off half the national debt c: about the same as pouring a bucket of water in the ocean of debt that obama has created.

my point being, onestar, you keep whining on about the "taxing the rich" when it would not impact obamas spending spree by 1%. So if he gets his way and people will see there is no change, who are you going to blame then?? Oh yea, I forgot, Bush

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