WASHINGTON — President Barack Obama says he won't accept a plan to avert the so-called fiscal cliff that doesn't ask the wealthy to pay more in taxes. In Saturday's radio and Internet address, Obama says the election showed support for his “balanced” approach and Congress can provide certainty by extending tax cuts for middle-class families. House Speaker John Boehner says in the Republican address Congress should not raise tax rates on Americans and instead focus on closing tax loopholes, lowering rates and fixing entitlement programs. Boehner says he is hopeful the two sides can come up with an agreement that would pass Congress. The White House says Obama would veto any legislation extending tax cuts for families making $250,000 or more. Obama is expected to meet with congressional leaders next week. Obama declared he was not “wedded to every detail” of his approach to prevent a looming set of automatic tax hikes and budgets cuts that threaten to erase millions of jobs and push the US back into an economic recession. But the president insisted his re-election gave him a mandate to raise taxes on wealthier Americans. The changes, widely characterized as a dangerous “fiscal cliff” set to kick in Jan. 1, include a series of expiring tax cuts that were approved in the George W. Bush administration. The other half of the problem is a set of punitive across-the-board spending cuts, looming only because partisan panel of lawmakers failed to reach a debt deal. Put together, they could mean the loss of roughly 3 million jobs. “The majority of Americans agree with my approach,” said Obama, brimming with apparent confidence in his first White House statement since securing a second term. Trouble is, the Republicans who run the House plainly do not agree with his plans. Speaker John Boehner insisted that raising tax rates as Obama wants “will destroy jobs in America.” So began the “fiscal cliff” political maneuvering that will determine which elected power center — the White House or the House — bends more on its promises to voters. An exhausting presidential race barely history, Washington was back quickly to governing on deadline, with agreement on a crucial goal but divisions on how to get there. Obama invited the top four leaders of Congress to the White House next week for talks, right before he departs on a trip to Asia. World stocks mostly fell Friday as fears persisted over the “fiscal cliff” that's seen as a big threat to the economic recovery. On Wall Street, stocks managed a small rally. The Dow was up about 30 points when Boehner started talking and about 80 points shortly after. Then Obama said he would not accept any approach to federal deficit reduction that doesn't ask the wealthy to pay more in taxes. A spokesman later said Obama would veto legislation extending tax cuts for families making $250,000 or more. The CBO analysis says the looming combination of automatic tax increases and spending cuts would cut the massive US deficit by $503 billion through next September, but that the fiscal austerity would cause the economy to shrink by 0.5 percent next year and cost millions of jobs. The new study estimates that the nation's gross domestic product would grow by 2.2 percent next year if all Bush-era tax rates were extended and would expand by almost 3 percent if Obama's 2-percentage-point payroll tax cut and current jobless benefits for the long-term unemployed were extended as well. About 60 percent of voters said in exit polls Tuesday that taxes should increase, either for everyone or those making over $250,000. Left unsaid by Obama was that even more voters opposed raising taxes to help cut the deficit. Since the election, Boehner and Obama have both responded to the reality that they need each other. Compromise has become mandatory if the two leaders are to avoid economic harm and the wrath of a public sick of government dysfunction. Obama says he is willing to talk about changes to government funded medical insurance for the poor and elderly, earning him the ire of the left. Boehner says he will accept raising tax revenue and not just slashing spending, although he insists it must be done by reworking the tax code, not raising rates. The framework, at least, is there for a broad deal on taxes. — AP
