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| Obama warns of 'Scrooge Christmas' if Congress fails to act on fiscal cliff | Obama warns of 'Scrooge Christmas' if Congress fails to act on fiscal cliff |
| (30 days later) | |
| Barack Obama has warned of a "Scrooge Christmas" unless Republicans in Congress pass a bill to prevent income tax going up for tens of millions of Americans on 1 January. | Barack Obama has warned of a "Scrooge Christmas" unless Republicans in Congress pass a bill to prevent income tax going up for tens of millions of Americans on 1 January. |
| Obama ramped up the rhetoric against the Republicans on Friday as he switched back to campaign mode, taking to the road in Pennsylvania less than a month after the election. | Obama ramped up the rhetoric against the Republicans on Friday as he switched back to campaign mode, taking to the road in Pennsylvania less than a month after the election. |
| His speech came as both the White House and the Republicans suggested they remained far apart on an early deal on the fiscal cliff crisis. | His speech came as both the White House and the Republicans suggested they remained far apart on an early deal on the fiscal cliff crisis. |
| Within minutes of Obama's speech, Republican House speaker John Boehner held a press conference at the Capitol to say he was not going to allow himself to be squeezed by the White House into a premature deal. | Within minutes of Obama's speech, Republican House speaker John Boehner held a press conference at the Capitol to say he was not going to allow himself to be squeezed by the White House into a premature deal. |
| Boehner expressed pessimism about the talks so far, saying the White House was still to put a serious deal on the table. "There is a stalemate. Let's not kid ourselves," Boehner said. | Boehner expressed pessimism about the talks so far, saying the White House was still to put a serious deal on the table. "There is a stalemate. Let's not kid ourselves," Boehner said. |
| He was dismissive of what Obama has offered so far. "It is not a serious proposal. So right now we are almost nowhere," Boehner said. | He was dismissive of what Obama has offered so far. "It is not a serious proposal. So right now we are almost nowhere," Boehner said. |
| Obama appears intent on forcing the Republicans on the defensive in a way that he failed to do during economic showdowns in 2010 and 2011. He also opted in his speech for the kind of folksy language that made presidents Bill Clinton and Ronald Reagan such good communicators. | Obama appears intent on forcing the Republicans on the defensive in a way that he failed to do during economic showdowns in 2010 and 2011. He also opted in his speech for the kind of folksy language that made presidents Bill Clinton and Ronald Reagan such good communicators. |
| Speaking at a toy factory in Pennsylvania, he said time was running out to conclude a deal. "If Congress does nothing, tax cuts will expire and every family will see income taxes automatically go up on January," Obama said. "I am assuming that does not sound too good to you. That is sort of like the lump of coal you get for Christmas. That is a Scrooge Christmas." | Speaking at a toy factory in Pennsylvania, he said time was running out to conclude a deal. "If Congress does nothing, tax cuts will expire and every family will see income taxes automatically go up on January," Obama said. "I am assuming that does not sound too good to you. That is sort of like the lump of coal you get for Christmas. That is a Scrooge Christmas." |
| In another folksy line, Obama joked that he had a "naughty and nice" list of members of Congress, joking that some were deserving of the kind of toys the factory made and some were not. | In another folksy line, Obama joked that he had a "naughty and nice" list of members of Congress, joking that some were deserving of the kind of toys the factory made and some were not. |
| He expressed optimism that both parties could and will work together in the coming weeks on a compromise. "In Washington, nothing is easy and there are going to be some prolonged negotiations and all of us are going to have to get out of our comfort zones to do that," Obama said. | He expressed optimism that both parties could and will work together in the coming weeks on a compromise. "In Washington, nothing is easy and there are going to be some prolonged negotiations and all of us are going to have to get out of our comfort zones to do that," Obama said. |
| He is proposing a bill to prevent a rise in taxes for 98% of the population but increasing for the remaining 2% of the wealthiest Americans. The Republicans are opposed to tax increases and want the revenue raised in other ways, such as closing tax loopholes. The Republicans also want bigger spending cuts than Obama is proposing. | He is proposing a bill to prevent a rise in taxes for 98% of the population but increasing for the remaining 2% of the wealthiest Americans. The Republicans are opposed to tax increases and want the revenue raised in other ways, such as closing tax loopholes. The Republicans also want bigger spending cuts than Obama is proposing. |
| Obama is proposing $1.6tn in tax increases over the next 10 years, $50bn in additional stimulus spending, and $400bn in Medicare cuts. Boehner complained the $1.6tn is double the figure that Obama spoke about on the campaign trail. Boehner also said there is more planned spending than anticipated and the spending cuts did not go nearly deep enough. | Obama is proposing $1.6tn in tax increases over the next 10 years, $50bn in additional stimulus spending, and $400bn in Medicare cuts. Boehner complained the $1.6tn is double the figure that Obama spoke about on the campaign trail. Boehner also said there is more planned spending than anticipated and the spending cuts did not go nearly deep enough. |
| The president, seemingly confident the Republicans will eventually buckle and buoyed by cracks already appearing in their ranks, is intent on ensuring that if every taxpayer sees a rise in January, the Republicans will get the blame. | The president, seemingly confident the Republicans will eventually buckle and buoyed by cracks already appearing in their ranks, is intent on ensuring that if every taxpayer sees a rise in January, the Republicans will get the blame. |
| "This is too important to our economy, it is too important for our families, not to to get this done. It is not acceptable to me – and I don't think it is acceptable to you – for just a handful of Republicans in Congress to hold middle-class tax cuts hostage simply because they do not want tax rates on upper-income folks to go up. That does not make sense," the president said. | "This is too important to our economy, it is too important for our families, not to to get this done. It is not acceptable to me – and I don't think it is acceptable to you – for just a handful of Republicans in Congress to hold middle-class tax cuts hostage simply because they do not want tax rates on upper-income folks to go up. That does not make sense," the president said. |
| A White House spokesman, Josh Earnest, briefing reporters on a flight to Pennsylvania, denied the figure on the campaign trail had been $800bn and had always been $1.6tn. | A White House spokesman, Josh Earnest, briefing reporters on a flight to Pennsylvania, denied the figure on the campaign trail had been $800bn and had always been $1.6tn. |
| "There was nothing included in those discussions that would surprise you … I was surprised they [Republicans] were surprised … There is no reason for anybody to be surprised," Earnest said. | "There was nothing included in those discussions that would surprise you … I was surprised they [Republicans] were surprised … There is no reason for anybody to be surprised," Earnest said. |
| Republican senator Orrin Hatch denounced Obama's proposed tax increases. Hatch said Obama was proposing a $2tn tax increase – $400bn more than Obama actually suggested – without any meaningful spending cuts. This did not square with the president's claim that he wanted to help manufacturers, the senator said. | Republican senator Orrin Hatch denounced Obama's proposed tax increases. Hatch said Obama was proposing a $2tn tax increase – $400bn more than Obama actually suggested – without any meaningful spending cuts. This did not square with the president's claim that he wanted to help manufacturers, the senator said. |
| "If President Obama is serious, then why is it that he wants to hit those very manufacturers with massive tax hikes that would hurt those businesses' ability to hire, expand and invest?" Hatch said. | "If President Obama is serious, then why is it that he wants to hit those very manufacturers with massive tax hikes that would hurt those businesses' ability to hire, expand and invest?" Hatch said. |
| Republican members of Congress have been more talkative to their local media outlets than they have been to the national press. Many have said they do not feel bound by the pledge they signed with anti-tax campaigner Grover Norquist not to raise taxes. Some argued they would not be breaking the pledge by supporting closing tax loopholes or by allowing George Bush-era cuts to expire on January 1. | Republican members of Congress have been more talkative to their local media outlets than they have been to the national press. Many have said they do not feel bound by the pledge they signed with anti-tax campaigner Grover Norquist not to raise taxes. Some argued they would not be breaking the pledge by supporting closing tax loopholes or by allowing George Bush-era cuts to expire on January 1. |
| The dilemma facing Republicans is summed up by Republican congressman Lee Terry, from Nebraska, who signed Norquist's pledge but said he is open to a deal that includes some new tax revenue. He was quoted in the Omaha World-Herald saying Obama had an incentive for allowing the country to go over the fiscal cliff and then blame Republicans. | The dilemma facing Republicans is summed up by Republican congressman Lee Terry, from Nebraska, who signed Norquist's pledge but said he is open to a deal that includes some new tax revenue. He was quoted in the Omaha World-Herald saying Obama had an incentive for allowing the country to go over the fiscal cliff and then blame Republicans. |
| "We're screwed either way," Terry said. "We really have no leverage in these discussions." | "We're screwed either way," Terry said. "We really have no leverage in these discussions." |
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