[h=3]By SIOBHAN HUGHES And JANET HOOK[/h]WASHINGTON—House Speaker John Boehner on Friday sounded a downbeat note about talks to avoid the so-called fiscal cliff, but he sidestepped questions about whether Republicans would be flexible on allowing top tax rates to rise.
"There are a lot of things that are possible to put the revenues the president seeks on the table," Mr. Boehner said at a news conference on Capitol Hill. "But none of it is going to be possible if the president insists on his position, insists on my way or the highway—that's not the way to get to an agreement."
His comments came in response to a question about whether Republicans would be open to allowing the top individual rate to rise to a level of perhaps 37%—a rate that would fall short of the 39.6% rate demanded by President Barack Obama. A spokesman later said the House speaker didn't intend to signal any shift of position on rates.
"As I've said many, many, many times: I oppose tax rate increases because tax rate increases cost American jobs,'' Mr. Boehner, of Ohio, said in a follow-up statement. "That has not changed, and will not change."
House Minority Leader Nancy Pelosi (D., Calif.), speaking shortly after Mr. Boehner, signaled flexibility on the top rate, saying the fight wasn't about whether 37% was the appropriate top tax rate, but about how to raise enough tax revenue.
ReutersU.S. House Speaker John Boehner (R., Ohio) speaks to the media outside his office on Capitol Hill in Washington, Dec. 7, 2012.
"It's not about the rate—it's about the money," Mrs. Pelosi told reporters.
Mrs. Pelosi said that Congress should be in session in order to "have that kind of a review of the facts" about whether accepting a lower top rate would raise enough money.
Mr. Boehner spoke with Mr. Obama on Wednesday, and staff resumed conversations on Thursday after a nearly weeklong lull. The two sides have been at odds for more than a month over how to avoid the tax increases and spending cuts set for next year—a combination known as the fiscal cliff.
"The phone call was pleasant—but it was just more of the same," Mr. Boehner said on Friday. He added that conversations with staff were also "more of the same."
Mr. Obama has insisted that tax rates increase on high earners. Mr. Boehner has agreed to higher tax revenue, but only through closing tax loopholes. He says that higher tax rates would harm small businesses that report income through the tax forms of individual owners.
"I came out the day after the election, and I put revenues on the table, taking a step toward the president to try to resolve this," Mr. Boehner said. "When is he going to take a step towards us?"
The debate over avoiding the fiscal cliff has followed a path typical of high-stakes Washington negotiations. The process began with bipartisan pronouncements of optimism. The two sides then dug in and offered bargaining positions they knew would be unacceptable to their adversaries.
Mr. Obama last week proposed a plan nearly identical to his latest budget—including $1.6 trillion in tax increases—which Republicans rejected. The White House had a similar reaction to the House GOP's Monday counteroffer to raise taxes by half that amount and make cuts in Medicare and Social Security that Democrats deem unacceptable.
The central bone of contention has been Mr. Obama's demand that Congress pass legislation extending current tax rates for household income up to $250,000—they are scheduled to increase in January—but allow rates to rise for higher-income brackets. The president continued to press his case Thursday in his latest campaign-style event, traveling to northern Virginia to meet with a middle-class family who would be hit by such a tax increase if the fiscal cliff isn't averted.
"I'm not going to sign any package that somehow prevents the top rate from going up for folks at the top 2%," the president said. "But I do remain optimistic that we can get something done that is good for families like this [one], and that is good for the American economy."
While GOP leaders have stalwartly opposed any rate increase, an array of ideas has popped up from the party's rank and file showing growing willingness to consider such a move as part of a broader budget deal.
Rep. Steve LaTourette (R., Ohio) said that in a House GOP meeting on Wednesday he and others proposed legislation including the Bowles-Simpson deficit-reduction plan to raise taxes and cut spending. Mr. LaTourette is collecting signatures on a letter to congressional leaders backing that approach and expects to have more than 100 co-signers—about half Republicans.
"Positions are softening," said Mr. LaTourette, who is retiring at the end of this year.
In the Senate, flexibility on rates is being shown both by the GOP's most conservative and more liberal members.
Sen. Susan Collins of Maine, a centrist Republican, is soliciting support for a proposal to impose a 2% surtax on income over $1 million but to exclude small-business owners.
Meantime, Sen. Tom Coburn of Oklahoma, a conservative, has said he would rather raise rates on upper-bracket earners than impose limits on deductions, as GOP leaders have proposed.
Rep. Tom Cole (R., Okla.) said he sees growing interest in his strategy of voting to extend middle-class tax rates and postpone until next year the fight over upper brackets. Although the idea hasn't been embraced by most in his party, he said it is "an option being considered."
—Peter Nicholas and Carol E. Lee contributed to this article.Write to Siobhan Hughes at [email protected] and Janet Hook at [email protected]
"There are a lot of things that are possible to put the revenues the president seeks on the table," Mr. Boehner said at a news conference on Capitol Hill. "But none of it is going to be possible if the president insists on his position, insists on my way or the highway—that's not the way to get to an agreement."
His comments came in response to a question about whether Republicans would be open to allowing the top individual rate to rise to a level of perhaps 37%—a rate that would fall short of the 39.6% rate demanded by President Barack Obama. A spokesman later said the House speaker didn't intend to signal any shift of position on rates.
"As I've said many, many, many times: I oppose tax rate increases because tax rate increases cost American jobs,'' Mr. Boehner, of Ohio, said in a follow-up statement. "That has not changed, and will not change."
House Minority Leader Nancy Pelosi (D., Calif.), speaking shortly after Mr. Boehner, signaled flexibility on the top rate, saying the fight wasn't about whether 37% was the appropriate top tax rate, but about how to raise enough tax revenue.
ReutersU.S. House Speaker John Boehner (R., Ohio) speaks to the media outside his office on Capitol Hill in Washington, Dec. 7, 2012.
"It's not about the rate—it's about the money," Mrs. Pelosi told reporters.
Mrs. Pelosi said that Congress should be in session in order to "have that kind of a review of the facts" about whether accepting a lower top rate would raise enough money.
Mr. Boehner spoke with Mr. Obama on Wednesday, and staff resumed conversations on Thursday after a nearly weeklong lull. The two sides have been at odds for more than a month over how to avoid the tax increases and spending cuts set for next year—a combination known as the fiscal cliff.
"The phone call was pleasant—but it was just more of the same," Mr. Boehner said on Friday. He added that conversations with staff were also "more of the same."
Mr. Obama has insisted that tax rates increase on high earners. Mr. Boehner has agreed to higher tax revenue, but only through closing tax loopholes. He says that higher tax rates would harm small businesses that report income through the tax forms of individual owners.
"I came out the day after the election, and I put revenues on the table, taking a step toward the president to try to resolve this," Mr. Boehner said. "When is he going to take a step towards us?"
The debate over avoiding the fiscal cliff has followed a path typical of high-stakes Washington negotiations. The process began with bipartisan pronouncements of optimism. The two sides then dug in and offered bargaining positions they knew would be unacceptable to their adversaries.
Mr. Obama last week proposed a plan nearly identical to his latest budget—including $1.6 trillion in tax increases—which Republicans rejected. The White House had a similar reaction to the House GOP's Monday counteroffer to raise taxes by half that amount and make cuts in Medicare and Social Security that Democrats deem unacceptable.
The central bone of contention has been Mr. Obama's demand that Congress pass legislation extending current tax rates for household income up to $250,000—they are scheduled to increase in January—but allow rates to rise for higher-income brackets. The president continued to press his case Thursday in his latest campaign-style event, traveling to northern Virginia to meet with a middle-class family who would be hit by such a tax increase if the fiscal cliff isn't averted.
"I'm not going to sign any package that somehow prevents the top rate from going up for folks at the top 2%," the president said. "But I do remain optimistic that we can get something done that is good for families like this [one], and that is good for the American economy."
While GOP leaders have stalwartly opposed any rate increase, an array of ideas has popped up from the party's rank and file showing growing willingness to consider such a move as part of a broader budget deal.
Rep. Steve LaTourette (R., Ohio) said that in a House GOP meeting on Wednesday he and others proposed legislation including the Bowles-Simpson deficit-reduction plan to raise taxes and cut spending. Mr. LaTourette is collecting signatures on a letter to congressional leaders backing that approach and expects to have more than 100 co-signers—about half Republicans.
"Positions are softening," said Mr. LaTourette, who is retiring at the end of this year.
In the Senate, flexibility on rates is being shown both by the GOP's most conservative and more liberal members.
Sen. Susan Collins of Maine, a centrist Republican, is soliciting support for a proposal to impose a 2% surtax on income over $1 million but to exclude small-business owners.
Meantime, Sen. Tom Coburn of Oklahoma, a conservative, has said he would rather raise rates on upper-bracket earners than impose limits on deductions, as GOP leaders have proposed.
Rep. Tom Cole (R., Okla.) said he sees growing interest in his strategy of voting to extend middle-class tax rates and postpone until next year the fight over upper brackets. Although the idea hasn't been embraced by most in his party, he said it is "an option being considered."
—Peter Nicholas and Carol E. Lee contributed to this article.Write to Siobhan Hughes at [email protected] and Janet Hook at [email protected]