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

Video British Fighters on Frontline of Islamic State Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Pakistan's Political Turmoil Again Shines Spotlight on Military

Thousands of protesters calling for PM Sharif to step down continue protests in front of parliament, as critics fear political impasse could spur another military coup More

Photogallery Ebola Quarantines Spark Anxiety in Liberian Capital

Food prices rise sharply as residents attempting purchases clash with security forces, leaving one person dead 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.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid