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| President Barack Obama gestures as he speaks about the economy and the deficit, Friday, Nov. 9, 2012, in the East Room of the White House in Washington. |
WASHINGTON (AP) -- 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.
greement 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.
