WASHINGTON — Congress returned to a lame-duck session with no signs of quick compromise to ease the nation's budget deadlock, and the White House rolled out a strategy Monday to marshal popular support for raising taxes on the wealthiest tier of income earners.
Closed-door talks by senior aides produced no clear progress despite President Obama's private phone call over the weekend to House Speaker John A. Boehner (R-Ohio) in an effort to forge a deficit reduction deal in the five weeks before current tax rates expire, which would lead to tax increases for most Americans.
Familiar lines began to form as both sides jockeyed to avoid the so-called fiscal cliff, the combination of $500 billion in automatic federal tax increases and spending cuts that economists warn could send the nation back into recession next year.
But the battle assumed new contours as some senior Republican lawmakers distanced themselves from their party's strict anti-tax pledge and Obama took his case public. He warned that the threat of a tax hike on ordinary Americans could dampen winter holiday spending and create a crisis in consumer confidence.
"The president has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year," the White House said in a statement.
Obama got a boost from billionaire investor Warren Buffett, who said wealthier Americans, including himself, should pay more taxes. He dismissed Republican arguments that such tax increases would hamper investment.
"In recent years, my gang has been leaving the middle class in the dust," Buffett wrote in an op-ed for the New York Times. "Let's forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased."
The broad outline of a deal could be seen, although any accord appeared far from imminent.
Over the last week, three top Republican lawmakers — Sen. Lindsey Graham of South Carolina, Sen. Saxby Chambliss of Georgia and Rep. Peter T. King of New York — all indicated they were willing to raise some taxes in exchange for an agreement from Democrats to curb spending. They broke publicly with conservative stalwart Grover Norquist, the influential president of Americans for Tax Reform.
"It's fair to ask my party to put revenue on the table," Graham said on ABC's
Closed-door talks by senior aides produced no clear progress despite President Obama's private phone call over the weekend to House Speaker John A. Boehner (R-Ohio) in an effort to forge a deficit reduction deal in the five weeks before current tax rates expire, which would lead to tax increases for most Americans.
Familiar lines began to form as both sides jockeyed to avoid the so-called fiscal cliff, the combination of $500 billion in automatic federal tax increases and spending cuts that economists warn could send the nation back into recession next year.
But the battle assumed new contours as some senior Republican lawmakers distanced themselves from their party's strict anti-tax pledge and Obama took his case public. He warned that the threat of a tax hike on ordinary Americans could dampen winter holiday spending and create a crisis in consumer confidence.
"The president has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year," the White House said in a statement.
Obama got a boost from billionaire investor Warren Buffett, who said wealthier Americans, including himself, should pay more taxes. He dismissed Republican arguments that such tax increases would hamper investment.
"In recent years, my gang has been leaving the middle class in the dust," Buffett wrote in an op-ed for the New York Times. "Let's forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased."
The broad outline of a deal could be seen, although any accord appeared far from imminent.
Over the last week, three top Republican lawmakers — Sen. Lindsey Graham of South Carolina, Sen. Saxby Chambliss of Georgia and Rep. Peter T. King of New York — all indicated they were willing to raise some taxes in exchange for an agreement from Democrats to curb spending. They broke publicly with conservative stalwart Grover Norquist, the influential president of Americans for Tax Reform.
"It's fair to ask my party to put revenue on the table," Graham said on ABC's