President, Speaker try for budget common ground

Budget impasse … US President Barack Obama and House of Representatives Speaker, John Boehner, right. Photo: Reuters
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PRESIDENT Barack Obama and Republican House of Representatives Speaker John Boehner have defended their competing approaches for resolving the budget impasse, even as both professed their willingness to reach common ground.

Mr Obama, in his first formal remarks since the night of his re-election, said he would open discussions with congressional leaders next week to seek a compromise, and then, before an applauding crowd of supporters in the White House’s East Room, defended the ”detailed plan” that he campaigned on – including higher taxes on the wealthy.

”I’m not wedded to every detail of my plan. I am open to compromise. I am open to new ideas,” Mr Obama said. ”But I refuse to accept any approach that isn’t balanced.

”We have to combine spending cuts with revenue, and that means asking the wealthiest Americans to pay a little more in taxes.”

The President called on Congress to immediately extend existing tax rates for 98 per cent of taxpayers.

Mr Boehner, citing a ”cordial” conversation with the President on the morning after the election, said he was ”hopeful that productive conversations can begin soon so that we can forge an agreement that can pass the Congress”.

But he insisted, as the Republicans put it throughout the campaign, that ”the problem with raising tax rates on the wealthiest Americans is that more than half of them are small-business owners”.

He added: ”Raising tax rates will slow down our ability to create the jobs that everyone says they want.”

Asked if the election result had weakened his hand, Mr Boehner said: ”There is a Republican majority here in the House. The American people re-elected the Republican majority.”

New York Times

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