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| Obama talks tough over fiscal cliff and refuses to buckle on GOP tax demands | Obama talks tough over fiscal cliff and refuses to buckle on GOP tax demands |
| (about 1 month later) | |
| Barack Obama adopted a tougher approach to the fiscal cliff showdown on Wednesday when he made an unequivocal pledge that he will not cave in to Republican demands for tax cuts for the wealthy. | Barack Obama adopted a tougher approach to the fiscal cliff showdown on Wednesday when he made an unequivocal pledge that he will not cave in to Republican demands for tax cuts for the wealthy. |
| Apparently emboldened by his election victory and free from the pressure of another campaign, Obama told a White House press conference that while almost everything else was up for discussion, the wealthiest Americans would have to pay their share. | Apparently emboldened by his election victory and free from the pressure of another campaign, Obama told a White House press conference that while almost everything else was up for discussion, the wealthiest Americans would have to pay their share. |
| During last year's showdown with Republican leaders in Congress that almost brought Washington to a standstill, Obama was forced to accept a compromise just days before Christmas that included extending tax cuts for the richest Americans, introduced by George W Bush. | During last year's showdown with Republican leaders in Congress that almost brought Washington to a standstill, Obama was forced to accept a compromise just days before Christmas that included extending tax cuts for the richest Americans, introduced by George W Bush. |
| Asked at the press conference if he could offer an assurance that he would not cave in again, Obama said: "What I said at the time is what I meant. Which is: this was a one-time proposition. What I have told leaders privately as well as publicly is that we can not afford to extend the Bush tax cuts for the wealthy." | Asked at the press conference if he could offer an assurance that he would not cave in again, Obama said: "What I said at the time is what I meant. Which is: this was a one-time proposition. What I have told leaders privately as well as publicly is that we can not afford to extend the Bush tax cuts for the wealthy." |
| The press conference was his first formal, televised appearance before the White House press corps in eight months. He used it to take a swipe at two senior Republican senators, John McCain and Lindsey Graham, who criticised the UN ambassador, Susan Rice, over comments she made about the September 11 attack on the US consulate in Benghazi. | The press conference was his first formal, televised appearance before the White House press corps in eight months. He used it to take a swipe at two senior Republican senators, John McCain and Lindsey Graham, who criticised the UN ambassador, Susan Rice, over comments she made about the September 11 attack on the US consulate in Benghazi. |
| He also addressed the scandal over General David Petraeus for the first time in detail, said that tackling climate change would be a priority in his second term, and promised to press ahead with immigration reform. | He also addressed the scandal over General David Petraeus for the first time in detail, said that tackling climate change would be a priority in his second term, and promised to press ahead with immigration reform. |
| One of the biggest criticisms of Obama in his first term from fellow Democrats is that he was too passive in dealing with Republicans and failed to show sufficient leadership. | One of the biggest criticisms of Obama in his first term from fellow Democrats is that he was too passive in dealing with Republicans and failed to show sufficient leadership. |
| Speaking in the East Room of the White House, Obama was more confident in dealing with the media than some of his laboured performances in the past. He indicated that he understood the criticisms of his first term: "I hope and intend to be a better president in the second term than I was in the first," he said. | Speaking in the East Room of the White House, Obama was more confident in dealing with the media than some of his laboured performances in the past. He indicated that he understood the criticisms of his first term: "I hope and intend to be a better president in the second term than I was in the first," he said. |
| Democrats in Congress as well as many activists and supporters regard the tax issue as a touchstone. Many of them were dismayed that Obama appeared to be too passive, and at times too willing to bend, in his dealings with Republicans in Congress over the last two years. But given the unequivocal nature of his comments on Wednesday, Obama will find it hard to row back from his promises on tax. | Democrats in Congress as well as many activists and supporters regard the tax issue as a touchstone. Many of them were dismayed that Obama appeared to be too passive, and at times too willing to bend, in his dealings with Republicans in Congress over the last two years. But given the unequivocal nature of his comments on Wednesday, Obama will find it hard to row back from his promises on tax. |
| The Republican leader in the House, John Boehner, and other senior members of the party have adopted a more conciliatory tone since the election. But they have gone on to say that they remain opposed to any tax rises for the wealthy. | The Republican leader in the House, John Boehner, and other senior members of the party have adopted a more conciliatory tone since the election. But they have gone on to say that they remain opposed to any tax rises for the wealthy. |
| At the press conference, Obama reiterated that there were only two options facing the nation on January 1: either everyone's taxes go up, or just those of the top-earning 2% of Americans. | At the press conference, Obama reiterated that there were only two options facing the nation on January 1: either everyone's taxes go up, or just those of the top-earning 2% of Americans. |
| Although he repeated he was seeking compromise with the Republicans, Obama combined with this with a new-found air of determination not to bend on the 2%. He is putting the pressure on the Republicans in a way he failed to so last year, suggesting that if everyone faces tax rises on 1 January, it will be the GOP's fault. | Although he repeated he was seeking compromise with the Republicans, Obama combined with this with a new-found air of determination not to bend on the 2%. He is putting the pressure on the Republicans in a way he failed to so last year, suggesting that if everyone faces tax rises on 1 January, it will be the GOP's fault. |
| Obama is seeking a quick bill before Christmas to guarantee that taxes will not go up for the the other 98%. "What we can do is make sure that middle-class taxes don't go up. And so the most important important step we can take right now – and I think the foundation for a deal that helps the economy, creates jobs – is if right away that 98% of Americans are not going to see their taxes go up, 97% of small businesses are not going to see their taxes go up. | Obama is seeking a quick bill before Christmas to guarantee that taxes will not go up for the the other 98%. "What we can do is make sure that middle-class taxes don't go up. And so the most important important step we can take right now – and I think the foundation for a deal that helps the economy, creates jobs – is if right away that 98% of Americans are not going to see their taxes go up, 97% of small businesses are not going to see their taxes go up. |
| "If we get that in place, we are actually removing half the fiscal cliff. Half of the danger to our economy is removed by that single step." | "If we get that in place, we are actually removing half the fiscal cliff. Half of the danger to our economy is removed by that single step." |
| The showdown has potential ramifications beyond just the next few months. | The showdown has potential ramifications beyond just the next few months. |
| If Obama can win this confrontation, it might make it easier to get other legislation through over the next two years until the mid-term congressional elections. If he does not, Republicans, who retain control of the House, will feel more confident of being able to fend off other legislative initiatives. | If Obama can win this confrontation, it might make it easier to get other legislation through over the next two years until the mid-term congressional elections. If he does not, Republicans, who retain control of the House, will feel more confident of being able to fend off other legislative initiatives. |
| Obama said that as long as the tax cuts for the top 2% were dealt with, he was open to discussion of the whole tax system, particularly loopholes, and – a contentious point for some Democrats – consider serious reform of entitlements, in particular health costs. | Obama said that as long as the tax cuts for the top 2% were dealt with, he was open to discussion of the whole tax system, particularly loopholes, and – a contentious point for some Democrats – consider serious reform of entitlements, in particular health costs. |
| "There is a package to be shaped, and I am confident that folks of goodwill in both parties can make it happen. But what I am not going to do is extend Bush tax cuts for the wealthiest 2% that we can't afford and, according to economists, have the least impact on our economy." | "There is a package to be shaped, and I am confident that folks of goodwill in both parties can make it happen. But what I am not going to do is extend Bush tax cuts for the wealthiest 2% that we can't afford and, according to economists, have the least impact on our economy." |
| He added: "I want a big deal, a comprehensive deal." | He added: "I want a big deal, a comprehensive deal." |
| Reflecting his new-found confidence, Obama rounded on McCain and Graham for a press conference at Congress earlier in the day in which they said they would block any attempt by the president to nominate Rice as secretary of state in place of Hillary Clinton, because of what they claim is a misleading account she gave of the Benghazi attack. | Reflecting his new-found confidence, Obama rounded on McCain and Graham for a press conference at Congress earlier in the day in which they said they would block any attempt by the president to nominate Rice as secretary of state in place of Hillary Clinton, because of what they claim is a misleading account she gave of the Benghazi attack. |
| Obama accused them of "besmirching" her with their "outrageous" comments. He told the press conference he would nominate whoever he wanted as secretary of state. | Obama accused them of "besmirching" her with their "outrageous" comments. He told the press conference he would nominate whoever he wanted as secretary of state. |
| On immigration, which most Republicans have long opposed but which they might now be willing to consider given the importance of Latinos in the election, Obama promised reform "very soon" after his inauguration on January 21. | On immigration, which most Republicans have long opposed but which they might now be willing to consider given the importance of Latinos in the election, Obama promised reform "very soon" after his inauguration on January 21. |
| "I am very confident we can get immigration reform done," he said. He wanted to "seize the moment", adding that he was "already seeing signs" that some Republicans are beginning to come round. | "I am very confident we can get immigration reform done," he said. He wanted to "seize the moment", adding that he was "already seeing signs" that some Republicans are beginning to come round. |
| He favoured strong border controls and a pathway to legal status for those already living in the US, provided they paid taxes and were not engaged in criminal activity. | He favoured strong border controls and a pathway to legal status for those already living in the US, provided they paid taxes and were not engaged in criminal activity. |
| One of the biggest foreign policy challenges in his second term is Iran, and Obama said there is still a window for a diplomatic solution, insisting he will push for dialogue between Iran and the US and other countries. He denied a pre-election report that the US would engage in direct, one-to-one talks with Iran. | One of the biggest foreign policy challenges in his second term is Iran, and Obama said there is still a window for a diplomatic solution, insisting he will push for dialogue between Iran and the US and other countries. He denied a pre-election report that the US would engage in direct, one-to-one talks with Iran. |
| On Syria, he said the US is not yet ready to recognise the coalition of rebels that has just been formed as an alternative government. He would not go beyond describing them as representing the "legitimate" aspirations of the Syrian people. His concern was that extremists elements might infiltrate the coalition and he did not want to supply arms that might then be used against Americans. | On Syria, he said the US is not yet ready to recognise the coalition of rebels that has just been formed as an alternative government. He would not go beyond describing them as representing the "legitimate" aspirations of the Syrian people. His concern was that extremists elements might infiltrate the coalition and he did not want to supply arms that might then be used against Americans. |
| Obama hinted again at a possible role for his Republican challenger, Mitt Romney, praising his handling of the 2002 Winter Olympics in Salt Lake City and acknowledging that he had good ideas on the campaign trail. But he added: "I am not suggesting I have a specific assignment." | Obama hinted again at a possible role for his Republican challenger, Mitt Romney, praising his handling of the 2002 Winter Olympics in Salt Lake City and acknowledging that he had good ideas on the campaign trail. But he added: "I am not suggesting I have a specific assignment." |
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