US President Barack Obama has asked Republicans to move beyond partisan objections to compromise with him on averting the year-end fiscal cliff. Obama and congressional Republicans are struggling to come up with a deal to avoid year-end tax hikes and spending cuts that many economists say could plunge the economy back into recession.
The president made a fresh offer earlier this week that would raise taxes on those making $400,000 a year or more but the House of Representatives could vote on a proposal by Speaker John Boehner that would extend current tax rates for all but those making $1 million or more. Obama said he is still optimistic that a deal is possible but said he is puzzled that Republicans have not yet accepted his plan as a basis for negotiation.
Obama categorically asserted that he is not going to negotiate with the Republicans on debt limit or their attempt to use this as next pressure point. ‘We have been very clear about this. This is the USA, the world's economic superpower.
‘The idea that we lurch from crisis to crisis and every six months, or every nine months, that we threaten not to pay our bills on stuff we’ve already bought, and default, and ruin the full faith and credit of the USA – that's not how you run a great country,’ he said.
'So I've put forward a very clear principle: I will not negotiate around the debt ceiling. We’re not going to play the same game that we saw happen in 2011 – which was hugely destructive; hurt our economy; provided more uncertainty to the business community than anything else that happened,’ Obama said.
He said it is important to reduce deficit in a balanced and responsible way. 'In order to arrive at a compromise, I am prepared to do some very tough things, he said.
The president made a fresh offer earlier this week that would raise taxes on those making $400,000 a year or more but the House of Representatives could vote on a proposal by Speaker John Boehner that would extend current tax rates for all but those making $1 million or more. Obama said he is still optimistic that a deal is possible but said he is puzzled that Republicans have not yet accepted his plan as a basis for negotiation.
Obama categorically asserted that he is not going to negotiate with the Republicans on debt limit or their attempt to use this as next pressure point. ‘We have been very clear about this. This is the USA, the world's economic superpower.
‘The idea that we lurch from crisis to crisis and every six months, or every nine months, that we threaten not to pay our bills on stuff we’ve already bought, and default, and ruin the full faith and credit of the USA – that's not how you run a great country,’ he said.
'So I've put forward a very clear principle: I will not negotiate around the debt ceiling. We’re not going to play the same game that we saw happen in 2011 – which was hugely destructive; hurt our economy; provided more uncertainty to the business community than anything else that happened,’ Obama said.
He said it is important to reduce deficit in a balanced and responsible way. 'In order to arrive at a compromise, I am prepared to do some very tough things, he said.