Updated Wednesday, April 23, 2014 as of 3:35 PM ET
Practice - Regulatory/Compliance
Obama Makes Last-Minute Appeal as Budget Deadline Nears
by: Margaret Talev
Sunday, December 30, 2012
Print
Email
Reprints

President Barack Obama made a last- minute appeal for compromise as three senators said the chances were greater than 50-50 for a deal to avert more than $600 billion in tax increases and spending cuts scheduled to take effect Jan. 1.

In an interview broadcast today on NBC’s “Meet the Press,” Obama warned of “an adverse reaction in the markets” if Congress doesn’t act.

Republicans “say that their biggest priority is making sure that we deal with the deficit in a serious way, but the way they’re behaving is that their only priority is making sure that tax breaks for the wealthiest Americans are protected,” Obama said, adding that his offers to Republicans have been “so fair that a lot of Democrats get mad at me.”

In a statement, House Speaker John Boehner, an Ohio Republican, called Obama’s comments “ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party.”

The president’s interview with NBC was taped yesterday at the White House. At the other end of Pennsylvania Avenue, Senate negotiators from both parties were seeking compromise legislation to prevent at least some of the tax increases and spending cuts from taking effect.

'EXCEEDINGLY GOOD'

Appearing on “Fox News Sunday,” Senator Lindsey Graham, a South Carolina Republican, said the prospects for a deal before Jan. 1 are “exceedingly good.” They will include tax increases on upper-income Americans, he said, and represent a “political victory to the president.”

“Hats off to the president, he won,” Graham said. “He stood his ground. He’s going to get tax rate increases -- maybe not $250,000, but upper-income Americans.”

Graham said the “sad news for the country” is that any deal now won’t address debt and will guarantee a fresh fight over deficit reduction when the debt ceiling debate resurfaces early next year. He called on Republicans to have the “courage of our convictions.”

Senators Charles Schumer, a New York Democrat, and Jon Kyl of Arizona, the Senate’s No. 2 Republican, assessed the odds of a deal before Jan. 1 at better than 50-50. “I think a little higher than that,” Schumer said on ABC’s “This Week,” while Kyl said, “I don’t disagree with Chuck.”

At the same time, Schumer said there are “no breakthroughs yet” by bipartisan negotiators in the Senate. Kyl said there is a “significant effort” by “responsible people on both sides of the aisle” because “if we are not able to reach an agreement, it will be dire.”

'A CHASM'

Not all senators were as optimistic. Appearing on CBS’s “Face the Nation,” Dick Durbin of Illinois, the Senate’s No. 2 Democrat, said, “There’s still a chasm here,” though he declined to say that a deal is impossible. Senator Tom Coburn, on the same program, said the two sides are “far apart.”

Obama said on NBC that “if all else fails,” when a new Congress convenes on Jan. 3 “the first bill that will be introduced on the floor will be to cut taxes on middle-class families.”

Asked about the immediate economic impact of going over the fiscal cliff -- a term used by Federal Reserve Chairman Ben S. Bernanke in February -- the president said, “It’s hard to speculate on the markets, but obviously I think business and investors are going to feel more negative about the economy next year.”

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Lists
Honoring the Top Branch Managers of 2013

Current Issue

The April Issue is now online!


TWITTER
FACEBOOK
LINKEDIN
Already a subscriber? Log in here