News / USA

Obama, House Speaker Take Positions on Budget Before Negotiations

Obama, House Speaker Take Positions on Budget Before Negotiationsi
|| 0:00:00
...    
🔇
X
Mil Arcega
November 10, 2012 1:51 AM
After a contentious election, another political battle is brewing in Washington, this one with potentially serious consequences for the U.S. economy. Both sides staked out their positions Friday on what to do about the so-called 'fiscal cliff' - a combination of tax hikes and spending cuts that would automatically take place at the end of the year. Mil Arcega reports that economists warn failure by U.S. lawmakers could send the economy into another tailspin.
Obama, House Speaker Take Positions on Budget Before Negotiations
After a contentious election, another political battle is brewing in Washington, this one with potentially serious consequences for the U.S. economy. Both sides staked out their positions Friday on what to do about the so-called "fiscal cliff" - a combination of tax hikes and spending cuts that would automatically take place at the end of the year. Economists warn failure by U.S. lawmakers could send the economy into another tailspin.

Fresh from his election victory, President Barack Obama sounded conciliatory Friday - inviting congressional and business leaders to the White House next week to begin discussions on a deficit reduction plan. The president said he is open to all ideas, but pushed back against any plan that relies solely on spending cuts to reduce the nation's debt.

"We can't just cut our way to prosperity. If we're serious about reducing the deficit, we have to combine spending cuts with revenue, and that means asking the wealthiest Americans to pay a little more in taxes," said Obama.

Republicans say tax hikes on the wealthy would result in massive job losses.  

Speaking an hour before the president, House Speaker John Boehner said he would support some revenue increases as part of overall tax reforms. But the Republican congressional leader wants to extend the deadline for negotiations to work out differences.

"2013 should be the year we begin to solve our debt through tax reform and entitlement reform, and I'm proposing we avert the fiscal cliff together in a manner that insures that 2013 is the year that our government finally comes to grips with the major problems that are facing us," said Boehner.

Automatic tax increases and drastic cuts to defense and domestic spending kick in January 1, 2013 unless Congress is able to craft a plan to reduce the nation's nearly $16-trillion debt.

After campaigning for months on allowing tax cuts to expire only for wealthy Americans, Obama said the time for "drama and negotiations" is over.

"Nobody, not Republicans, not Democrats want taxes to go up for folks making under $250,000 a year. So let's not wait. Even as we're negotiating a broader deficit reduction package, let's extend the middle class tax cuts right now, let's do that right now," said the president.

Uncertainty over the U.S. fiscal crisis has roiled financial markets for weeks. The Congressional Budget Office says the combination of higher taxes and reduced spending could cut the deficit in half. But it would also push the world's largest economy into a recession, cost millions of jobs and threaten economic growth in other countries.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

This forum has been closed.
Comment Sorting
Comments
     
by: maz hess from: switzerland
November 10, 2012 7:48 AM
If boehner thinks that obama will give him more time to negotiate then he is dead wrong. Obama is ready to drive over the cliff. The next election will be only for the congress

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid