It’s being said that the reason the “majority” re-elected, President Obama is because of his promise to avoid a “fiscal cliff” and to raise the taxes for higher earners, a promise that he plans to keep. The tax raise, which plans to set in effect on Jan. 1 is because of the expiration of the Bush tax rates. President Obama didn’t out-right mention the the Bush tax rates, however he did state, “I refuse to accept any approach that isn’t balanced.” He then adds, “Our job now is to get a majority in Congress to reflect the will of the American people.” Check down bottom for more.
Taxes for everybody are set to rise Jan. 1 due to the expiration of the Bush tax rates and other measures. That, combined with the triggering of automatic defense and domestic spending cuts, amount to what is known in Washington as the “fiscal cliff” — an austerity blow so severe that a Congressional Budget Office report warned this week that it would cause a recession and drive unemployment up to 9.1 percent.
Officials in Washington, then, are scrambling to come up with an alternative plan that would avert the “cliff” while still pursuing a deficit-reduction package. But time is running out, and House Speaker John Boehner shortly before Obama’s remarks called on the president to take the reins.
“This is an opportunity for the president to lead,” Boehner said late Friday morning. “This is his moment to engage the Congress and work towards a solution that can pass both chambers.”
Boehner had already telegraphed that he wants the president to be in the driver’s seat on a deal, and not pass the tough decisions to Congress. “We’re ready to be led,” he said earlier in the week, shortly after Obama won re-election.