[h=3]By JARED A. FAVOLE[/h]
REUTERSU.S. President Barack Obama addresses his first news conference since his re-election.
WASHINGTON—President Barack Obama on Wednesday urged Congress to pass legislation extending tax breaks for the middle class first and then continue debating about how to handle taxes for the wealthy, maintaining a position he campaigned on for months.
During a press conference Wednesday, President Obama spoke about the approaching fiscal cliff and reiterated the need for bipartisan cooperation. Photo: Getty Images
"We should not hold the middle class hostage while we debate tax cuts for the wealthy," Mr. Obama said from the White House in his first news conference since winning re-election. "We should at least do what we can agree on."
Mr. Obama's comments suggest how he will approach negotiations with congressional leaders set to begin Friday at the White House. The president has urged Congress for months to agree to extend tax breaks on income of up to $250,000, though Republicans have been reluctant to do so because it might limit the ability to extend tax breaks for the wealthy.
Mr. Obama said "the majority of voters agreed with me" that the wealthy need to pay more. He threw cold water on suggestions that closing tax loopholes would raise enough revenue to cover the costs of extending tax cuts for the wealthy.
House Speaker John Boehner (R., Ohio) has said he would be willing to accept new tax revenues—not higher tax rates—if Democrats accept changes to entitlement programs such as Medicare.
It is unclear how the two sides could bridge the divide before January when a series of scheduled spending cuts and tax increases known as the fiscal cliff are slated to take effect. Such a scenario could pull the U.S. back into a recession, according to the nonpartisan Congressional Budget Office.
Speaking at a press conference Wednesday, President Obama responds to a question about the scandal involving General David Petraeus.
Mr. Obama is also expected to call for $1.6 trillion in tax revenue over the next decade when he meets with Congressional leaders. That figure comes from his last budget proposal to Congress and is double the $800 billion he discussed with Republicans in the summer of 2011.
Mr. Obama campaigned on ending tax breaks for the wealthy, and may face a backlash from progressive and labor groups if he backs away from that pledge. Mr. Obama met with such groups Tuesday and they said he intends to stand firm on making sure the wealthy pay their fair share.
In addition to those groups, Mr. Obama faces pressure from the business community to strike a deal with Republicans. He is meeting later Wednesday with about a dozen executives to discuss the fiscal cliff. Chief executives from Dow Chemical Co., American Express Co. and Wal-Mart Stores Inc. will be in the meeting.
Write to Jared A. Favole at [email protected]
REUTERSU.S. President Barack Obama addresses his first news conference since his re-election.
WASHINGTON—President Barack Obama on Wednesday urged Congress to pass legislation extending tax breaks for the middle class first and then continue debating about how to handle taxes for the wealthy, maintaining a position he campaigned on for months.
During a press conference Wednesday, President Obama spoke about the approaching fiscal cliff and reiterated the need for bipartisan cooperation. Photo: Getty Images
"We should not hold the middle class hostage while we debate tax cuts for the wealthy," Mr. Obama said from the White House in his first news conference since winning re-election. "We should at least do what we can agree on."
Mr. Obama's comments suggest how he will approach negotiations with congressional leaders set to begin Friday at the White House. The president has urged Congress for months to agree to extend tax breaks on income of up to $250,000, though Republicans have been reluctant to do so because it might limit the ability to extend tax breaks for the wealthy.
Mr. Obama said "the majority of voters agreed with me" that the wealthy need to pay more. He threw cold water on suggestions that closing tax loopholes would raise enough revenue to cover the costs of extending tax cuts for the wealthy.
House Speaker John Boehner (R., Ohio) has said he would be willing to accept new tax revenues—not higher tax rates—if Democrats accept changes to entitlement programs such as Medicare.
It is unclear how the two sides could bridge the divide before January when a series of scheduled spending cuts and tax increases known as the fiscal cliff are slated to take effect. Such a scenario could pull the U.S. back into a recession, according to the nonpartisan Congressional Budget Office.
Speaking at a press conference Wednesday, President Obama responds to a question about the scandal involving General David Petraeus.
Mr. Obama is also expected to call for $1.6 trillion in tax revenue over the next decade when he meets with Congressional leaders. That figure comes from his last budget proposal to Congress and is double the $800 billion he discussed with Republicans in the summer of 2011.
Mr. Obama campaigned on ending tax breaks for the wealthy, and may face a backlash from progressive and labor groups if he backs away from that pledge. Mr. Obama met with such groups Tuesday and they said he intends to stand firm on making sure the wealthy pay their fair share.
In addition to those groups, Mr. Obama faces pressure from the business community to strike a deal with Republicans. He is meeting later Wednesday with about a dozen executives to discuss the fiscal cliff. Chief executives from Dow Chemical Co., American Express Co. and Wal-Mart Stores Inc. will be in the meeting.
Write to Jared A. Favole at [email protected]