At the news conference, he laid out a two-step process for an overall compromise — immediate extension of all the expiring tax cuts except the top rate, followed by a comprehensive agreement in 2013 to overhaul the tax code and the government’s big benefits programs, which include Medicare, Medicaid and Social Security.
Obama signed legislation two years ago extending the Bush tax cuts in their entirety after saying he wouldn’t.
Asked why this time will be different, he said, “what I said at the time was what I meant, which is that this was a one-time proposition.”
Now, he said, legislation that keeps most of the cuts in place but not those for the upper-income earners would be “actually removing half the fiscal cliff.”
Asked if he viewed it as a deal-breaker if Republicans refused to allow the top tax rate to revert to 39.6 percent from the current 35 percent, he said, “I just want to emphasize I am open to new ideas if the Republican counterparts or some Democrats have a great idea for us to raise revenue, maintain progressivity, make sure the middle class isn’t getting hit, reduces our deficit.”’
White House press secretary Jay Carney said the president would bring to the table a proposal for $1.6 trillion in new taxes on business and the wealthy when he begins discussions with congressional Republicans, a figure that Obama outlined in his most recent budget plan. The targeted revenue is twice the amount Obama discussed with Republican leaders during debt talks during the summer of 2011.
Carney said the figure, combined with $1.1 trillion in spending cuts already signed into law, would reduce deficits by $4 trillion.
Earlier, Sen. Dick Durbin of Illinois, part of the Democratic leadership team, said that many “many Republicans believe now is the time to sit down and talk more revenue.” Durbin said the number of GOP lawmakers in the Senate willing to work toward accommodation now totals 20.