News / USA

White House: 'Fiscal Cliff' Talks Not Dead

President Barack Obama, flanked by National Governors Association Chairman, Delaware Governor Jack Martell, and NGA Vice Chair, Oklahoma Governor Mary Fallin, with Tim Geithner (R), meets with the NGA executive committee regarding the fiscal cliff.
President Barack Obama, flanked by National Governors Association Chairman, Delaware Governor Jack Martell, and NGA Vice Chair, Oklahoma Governor Mary Fallin, with Tim Geithner (R), meets with the NGA executive committee regarding the fiscal cliff.
Kent Klein
— White House officials said the Obama administration is still negotiating with Republicans in Congress on a looming fiscal crisis. Both sides are far apart in their negotiations, less than a month before big tax increases and spending cuts are set to take effect.

President Barack Obama has met only once with top lawmakers to discuss the budget dispute, which Democrats and Republicans agree could damage the U.S. economic recovery.

But White House press secretary Jay Carney said Tuesday the two sides have been holding a series of lower-level meetings to advance the talks.

“I can guarantee you that conversations continue at different levels among different groups," said Carney. "Whether there are emails being exchanged at this moment, I cannot say, but broadly speaking, there are conversations taking place.”

So far, each side has rejected the other’s proposals.  

In an interview with Bloomberg News on Tuesday, President Obama said Monday’s counteroffer by the Republican Speaker of the House of Representatives, John Boehner, was not acceptable.
 
“We have the potential of getting a deal done, but it is going to require what I talked about during the campaign, which is a balanced, responsible approach to deficit reduction that can help give businesses certainty and make sure that the country grows," he said. "And unfortunately, the Speaker’s proposal right now is still out of balance.”

Boehner and other Republicans last week shunned a White House plan, which would raise taxes on the richest Americans.

In a written statement Tuesday, Boehner said the president has offered a plan that could not pass either house of Congress.

The top Senate Republican, Minority Leader Mitch McConnell, said Mr. Obama needs to get serious about the negotiations.

“So I would hope the president would turn off the campaign - congratulations, you had a great victory - and let’s get serious about dealing with this deficit and debt," said McConnell. "We have wasted an enormous amount of time here, sparring back and forth in public. And it strikes me that it is a good time to get serious about the proposals.”

The president, meanwhile, invited several state governors from both parties to the White House Tuesday to hear their thoughts on the issue.

The governors, including Republican Gary Herbert, of the western state of Utah, agreed that urgent action is needed to avert the fiscal crisis before January 1.

“You have got to come together and get this done," Herbert said. "This impacts the economy. The uncertainty that is out there lingering is creating havoc with our economy in our states.”

Democratic Governor Jack Markell, of the eastern state of Delaware, said the crisis is standing in the way of the nation’s economic recovery.
 
“What people are concerned about is the uncertainty that the current state of the debate represents, in terms to business and individuals across the country," said Markell. "We all know that businesses are more likely to invest when they have a greater sense of what is to come.”

Markell said, however, he believes the president is “very focused” on finding an answer.

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