As 'fiscal cliff' looms, Obama issues stern summons
WASHINGTON -- With Congress in gridlock and stocks taking a fall, President Barack Obama issued a stern summons to lawmakers Friday to pass legislation to prevent year-end "fiscal cliff" tax increases on millions and avoid an imminent expiration of benefits for the long-term unemployed.
Congress was shutting down, and Obama was headed to Hawaii for the holidays. But both men indicated they'd be back working to beat the Jan. 1 deadline with an agreement between Christmas and New Year's.
One day after House GOP anti-tax rebels torpedoed Boehner's "Plan B" legislation because it would raise rates on million-dollar-earners, Obama said he still wants a bill that requires the well-to-do to pay more. "Everybody's got to give a little bit in a sensible way" to prevent the economy from pitching over a recession-threatening fiscal cliff, he said.
Boehner's office said the Ohio Republican intends to return after Christmas "ready to find a solution that can pass both houses of Congress."
At the White House, Obama projected optimism as he struggled to deal with the wreckage of weeks of failed negotiations and political maneuvering. "So call me a hopeless optimist, but I actually still think we can get it done," he said.
The president spoke at the end of a day in which stocks tumbled and congressional leaders squabbled as the fiscal cliff drew implacably closer.
Boehner spoke in the morning, describing the increasingly tangled attempts to beat the Jan. 1 deadline and head off the perilous combination of across-the-board tax hikes and deep spending cuts.
Obama said that in his negotiations with Boehner, he had offered to meet Republicans halfway when it came to taxes, and "more than halfway" toward their target for spending cuts.
The president said he remains committed to working toward a goal of longer-term deficit reduction, but in the meantime he said quick action is needed to keep taxes from rising for tens of millions.
"Averting this middle-class tax hike is not a Democratic responsibility or a Republican responsibility. With their votes, the American people have decided that government is a shared responsibility," he said.