Talks on Fiscal Cliff Resume After Standoff - Wall Street Journal

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[h=3]By JANET HOOK[/h]After days public posturing, private talks over how to avoid the fiscal cliff have resumed between the staff of House Speaker John Boehner and the White House.
"Lines of communication are open," said Michael Steel, a spokesman for Mr. Boehner (R., Ohio).
The talks break a nearly week-long silence that has reigned since administration officials traveled to Capitol Hill for contentious, unproductive meetings with Republicans. Mr. Boehner and President Barack Obama Wednesday spoke by phone and committed to renewing negotiating efforts.
Differences between the two sides remain wide over how to avert the tax increases and spending cuts that loom in January. The two sides nonetheless have allowed room for compromise even though they have spent the past two weeks staking out their most extreme positions.
Mr. Obama last week proposed a plan nearly identical to his last budget—including $1.6 trillion in tax increases—that Republicans flatly rejected. The White House had a similar reaction to the House GOP's Monday counteroffer to raise taxes half that amount and make cuts in Medicare and Social Security that Democrats deem unacceptable.
A small but growing number of Republicans have indicated a willingness to raise tax rates on the wealthy. Administration officials meanwhile have indicated they would not insist on raising the top rate all the way back to the Clinton-era level of 39.6%.
On Wednesday, Mr. Boehner told a closed door meeting of House Republicans that the talks were stalled but that he believed they were about to resume.
"We do want resolution," said Rep. James Lankford (R., Okla.), saying he was encouraged by the prospect of talks resuming.
Write to Janet Hook at [email protected]

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