President Obama, with the fiscal cliff and middle-class tax hikes looming larger, urged congressional leaders Saturday to holster their rhetoric and find compromise.
“We just can’t afford a politically self-inflicted wound to our economy,” Obama said in his weekly address.
“You meet your deadlines and your responsibilities every day,” the President told the American people. “The folks you sent here to serve should do the same. We cannot let Washington politics get in the way of America’s progress.”
PRESIDENT OBAMA PRESSURES CONGRESS IN LAST DITCH EFFORT TO AVOID FISCAL CLIFF
The House and Senate were set to hold an unusual Sunday afternoon session — but it was unclear if proposed fiscal cliff legislation would be ready for a vote by then.
On Saturday, negotiators from both parties assembled on Capitol Hill in hopes of a deal that would eliminate $536 billion in tax increases and $110 billion in automatic government spending cuts.
Senate Republican leader Mitch McConnell (R-Ky.) expressed some optimism that the harsh economic moves could be avoided.
CURRENT SESSION OF CONGRESS POISED TO BE THE LEAST PRODUCTIVE SINCE RECORDS STARTED BEING KEPT
“I hope so,” he told reporters in Washington as the Dec. 31 expiration deadline grew ever closer.
His Democratic opposite, Sen. Harry Reid of Nevada, was less convinced: “Whatever we come up with is going to be imperfect.”
There were some signs of movement toward a deal. The President was reportedly willing to set the threshold for tax increases at $400,000 in annual income instead of $250,000.
If Congress fails to act, taxes would rise by more than $3,000 in an estimated 28 million households for 2013.
The loss of funding for domestic programs and the Pentagon would also further damage the troubled U.S. economy — and could cost the country more than 3 million jobs.
The last-ditch talks that launched Friday were expected to continue through the weekend.
The President said that if congressional leaders can’t cut a deal, he will ask for a Monday vote on his own proposal to protect the middle class from a tax hike.
Obama’s plan would also extend long-term unemployment benefits due to expire for about 2 million job-seekers.
The two parties are also battling over inheritance taxes, currently taxed at 35% with the first $5 million exempted. The tax would jump to 55% with a $1 million exemption unless Congress takes action.
Any deals on the middle class tax hikes and the inheritance tax could break the Washington logjam and lead to resolution of other contentious economic issues.
Democrats have accused GOP House Speaker John Boehner of trying to delay any politically difficult votes until after he runs for re-election of the Republican-controlled body on Jan. 3.
Sen. Roy Blunt (R-Mo.) suggested the impending deadline could spur both sides to find some common ground.
“Divided government is a good time to solve hard problems — and in the next few days, leaders in Washington have an important responsibility to work together and do just that,” he said in the weekly GOP address.
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