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| Obama lands in Hawaii after urging Congress to 'cool off' on fiscal cliff | Obama lands in Hawaii after urging Congress to 'cool off' on fiscal cliff |
| (about 1 month later) | |
| President Barack Obama arrived in Hawaii on Saturday, having issued a demand that squabbling congressional leaders "cool off" over the holidays and adopt stopgap measures to avert the year-end fiscal cliff. | President Barack Obama arrived in Hawaii on Saturday, having issued a demand that squabbling congressional leaders "cool off" over the holidays and adopt stopgap measures to avert the year-end fiscal cliff. |
| In comments that signalled that the White House is coming to the conclusion that an overarching grand compromise is slipping from its grasp, Obama issued a statement tempering ambitions for a comprehensive deal to avert punitive tax rises and swingeing spending cuts. | In comments that signalled that the White House is coming to the conclusion that an overarching grand compromise is slipping from its grasp, Obama issued a statement tempering ambitions for a comprehensive deal to avert punitive tax rises and swingeing spending cuts. |
| The president said he remained "ready and willing" to put his name to such an agreement. But he conceded that with just days left to head off the automatic roll-out of fiscal measures that could plunge the US back into recession, the pressing need was to just get something on the table to avoid the pain of tax increases hitting every American family in the new year. | The president said he remained "ready and willing" to put his name to such an agreement. But he conceded that with just days left to head off the automatic roll-out of fiscal measures that could plunge the US back into recession, the pressing need was to just get something on the table to avoid the pain of tax increases hitting every American family in the new year. |
| "In 10 days, we face a deadline. In 10 days, under current law, tax rates are scheduled to rise on most Americans. And even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us – agrees that tax rates shouldn't go up for the other 98% of Americans," Obama said in a statement. | "In 10 days, we face a deadline. In 10 days, under current law, tax rates are scheduled to rise on most Americans. And even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us – agrees that tax rates shouldn't go up for the other 98% of Americans," Obama said in a statement. |
| He continued: "Every member of Congress believes that. Every Democrat, every Republican. So there is absolutely no reason – none – not to protect these Americans from a tax hike. | He continued: "Every member of Congress believes that. Every Democrat, every Republican. So there is absolutely no reason – none – not to protect these Americans from a tax hike. |
| "At the very least, let's agree right now on what we already agree on. Let's get that done." | "At the very least, let's agree right now on what we already agree on. Let's get that done." |
| The statement was made just minutes after the president ended a phone call with John Boehner, the under-pressure Republican House speaker. | The statement was made just minutes after the president ended a phone call with John Boehner, the under-pressure Republican House speaker. |
| On Thursday, Boehner was forced to withdraw a bill aimed at pushing his version of short-term fix to the growing crisis. The so-called 'plan B' proposal came amid stalled negotiations between the Republican leader and Obama and was intended to ratchet up the pressure on Democrats and the White House to bend further. | On Thursday, Boehner was forced to withdraw a bill aimed at pushing his version of short-term fix to the growing crisis. The so-called 'plan B' proposal came amid stalled negotiations between the Republican leader and Obama and was intended to ratchet up the pressure on Democrats and the White House to bend further. |
| But it was defeated in the House after a revolt from mainly Tea party-backed Republicans, who oppose all and any tax rise on individuals. | But it was defeated in the House after a revolt from mainly Tea party-backed Republicans, who oppose all and any tax rise on individuals. |
| As well as putting into question Boehner's credibility – with some suggesting that his position as speaker is now on the line – it puts into focus the challenge ahead in pushing any compromise through a deeply divided Congress. | As well as putting into question Boehner's credibility – with some suggesting that his position as speaker is now on the line – it puts into focus the challenge ahead in pushing any compromise through a deeply divided Congress. |
| Obama's statement Friday – on the eve of a family trip to the president's home state of Hawaii – came amid growing frustration over the ongoing fiscal crisis, and the impact it was already having on the market; the Dow Jones Industrial Average dropped by 120.88 points Friday. | Obama's statement Friday – on the eve of a family trip to the president's home state of Hawaii – came amid growing frustration over the ongoing fiscal crisis, and the impact it was already having on the market; the Dow Jones Industrial Average dropped by 120.88 points Friday. |
| The president had initially been pushing a plan that would have seen tax revenues rise by $1.6tn over the next decade, with a hike in the rate for those earning upwards of $250,000 a year central to proposals. | The president had initially been pushing a plan that would have seen tax revenues rise by $1.6tn over the next decade, with a hike in the rate for those earning upwards of $250,000 a year central to proposals. |
| Boehner has argued that such a move would be a "crippling blow" and that it was not accompanied by a large enough swipe at federal spending. | Boehner has argued that such a move would be a "crippling blow" and that it was not accompanied by a large enough swipe at federal spending. |
| Instead his 'plan B' would have pushed more limited tax increases on those earning in excess of $1m. But even that was not enough to assuage Tea party Republicans in Congress. | Instead his 'plan B' would have pushed more limited tax increases on those earning in excess of $1m. But even that was not enough to assuage Tea party Republicans in Congress. |
| The White House has indicated that it is willing to move the threshold for those targeted for more tax to $400,000, but with anti-tax House representatives in no mind to compromise, it seems that this, or even a greater concession by Democrats to move the line to $500,000, will get much traction in the House, given the intransigence of Tea party Republicans. | The White House has indicated that it is willing to move the threshold for those targeted for more tax to $400,000, but with anti-tax House representatives in no mind to compromise, it seems that this, or even a greater concession by Democrats to move the line to $500,000, will get much traction in the House, given the intransigence of Tea party Republicans. |
| On Friday, Obama urged compromise from both sides of the aisle. "Everyone has got to give a little bit, in a sensible way," he said. | On Friday, Obama urged compromise from both sides of the aisle. "Everyone has got to give a little bit, in a sensible way," he said. |
| Urging Republicans and Democrats to "cool off" over the Christmas break, he stressed that both sides needed to reach consensus when Congress reconvenes. | Urging Republicans and Democrats to "cool off" over the Christmas break, he stressed that both sides needed to reach consensus when Congress reconvenes. |
| "Now is not the time for more self-inflicted wounds, certainly not those coming from Washington," he said. | "Now is not the time for more self-inflicted wounds, certainly not those coming from Washington," he said. |
| Failure to strike a deal would result in the automatic triggering of $600bn worth of spending cuts and tax increases. This so-called fiscal cliff could be ruinous for the still fragile economic recovery in the US, experts have warned. | Failure to strike a deal would result in the automatic triggering of $600bn worth of spending cuts and tax increases. This so-called fiscal cliff could be ruinous for the still fragile economic recovery in the US, experts have warned. |
| Despite outwardly still hoping for a grand deal to be put in place, ending a cycle of America lurching from one eleventh-hour budget deal to the next, the White House is increasingly speaking about another short-term stop-gap measure. | Despite outwardly still hoping for a grand deal to be put in place, ending a cycle of America lurching from one eleventh-hour budget deal to the next, the White House is increasingly speaking about another short-term stop-gap measure. |
| Obama said he is committed to reducing the deficit for the long-term health of the US economy "whether it happens all at once or whether it happens in several different stages". | Obama said he is committed to reducing the deficit for the long-term health of the US economy "whether it happens all at once or whether it happens in several different stages". |
| He added that immediate task was making sure that America avoids plunging off the fiscal cliff on 1 January with a deal that "lays the groundwork for further work on both growth and deficit reduction". | He added that immediate task was making sure that America avoids plunging off the fiscal cliff on 1 January with a deal that "lays the groundwork for further work on both growth and deficit reduction". |
| Having outlined his latest appeal to Congress for a deal, albeit a more modest one, Obama boarded a plane to Hawaii. He leaves the difficult task of trying to hammer out a compromise with Republicans in Washington to his deputies. | Having outlined his latest appeal to Congress for a deal, albeit a more modest one, Obama boarded a plane to Hawaii. He leaves the difficult task of trying to hammer out a compromise with Republicans in Washington to his deputies. |
| But the fiscal cliff is likely to weigh heavily on the president's mind during the mini-break – aides confirmed that he will receive daily briefings. And in an indication that Obama is prepared to cut short his holiday to crack congressional heads further, officials said the return date to Washington is dependent on events. | But the fiscal cliff is likely to weigh heavily on the president's mind during the mini-break – aides confirmed that he will receive daily briefings. And in an indication that Obama is prepared to cut short his holiday to crack congressional heads further, officials said the return date to Washington is dependent on events. |
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