Obama signals compromise with GOP on tax cuts
A chastened President Barack Obama signaled a willingness to compromise with Republicans on tax cuts and energy policy Wednesday, one day after his party lost control of the House and suffered deep Senate losses in midterm elections.
At a White House news conference, the president said that when Congress returns, “my goal is to make sure we don’t have a huge spike in taxes for middle-class families.” He made no mention of his campaign-long insistence that tax cuts be permitted to expire on upper-income families.
He also virtually abandoned his energy legislation—hopelessly stalled in the Senate—featuring economic incentives to reduce carbon emissions from power plants, vehicles, and other sources.
“I’m going to be looking for other means of addressing this problem,” he said. “Cap and trade was just one way of skinning the cat,” he said, strongly implying there will be others.
In the campaign, Republicans slammed the bill as a “national energy tax” and jobs killer, and numerous Democrats sought to emphasize their opposition to the measure during their own reelection campaigns.
The president opened his post-election news conference by saying voters who felt frustrated by the sluggish pace of economic recovery had dictated the Republican takeover in the House.
The president said he was eager to sit down with the leaders of both political parties “and figure out how we can move forward together.”
He sought to tread a careful line, suggesting he would cooperate with Republicans where it was possible and confront them when it was not.
With his comments, Obama largely followed the lead of Republican leaders who said earlier in the day they were willing to compromise—within limits.
With unemployment at 9.6 percent, both the president and the Republicans will be under pressure to compromise. Yet neither must lose faith with core supporters—the Republicans with the Tea Party activists who helped them win power, Obama with the voters whose support he will need in 2012.
The Associated Press contributed to this report.
For more see Emily Belz’s WORLD Web Extra “The day after.”
See WORLD’s interactive national map for complete election results from across the country.

















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back to top18 Comments to “Obama signals compromise with GOP on tax cuts”
A chastened President Barack Obama…
Right there you lost me. The man is too smug and over-confident ever to be “chastened.” The only two modes he knows are bullying and condescension.
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Obama signals compromise with GOP on tax cuts
Well, he doesn’t have much choice, but you can bet they he’ll threaten a veto unless Republicans agree to raise taxes on those greedy people who make over $250K.
Obama will continue to do what he has done for the last few years. He will continue to mock and ridicule more than half of the electorate and whenever Republicans don’t do what he wants he’ll accuse them of being obstructionists.
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They can threaten all they want. The people are paying attention to who is doing the right thing for them. And they will judge in 2012.
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The tax cuts are a problem we need to deal with unfortunately. But he’d be crazy to take on energy. Can we say Bush’s take on social security. If he’s smart he’ll make the next two years about immigration. That would force the GOP to take votes that are bad for businesses and alienate them from Latino’s–plus provide several foot in mouth opportunities for Rand and coax Marco into playing nicely. Plus, we might get a needed and long over due reform out of it!
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I always wonder why people who make over $250K are considered greedy. Does it occur to anyone that God is blessing them & that they give back a sizable amount to God’s work & their community? Also, for a small business to make at least $250 a year is important. They need to keep capital in the bank in order to fund the tough times or product that becomes obsolete or facility repairs, etc. I don’t know if non-business owners realize all the risks involved in running a small business, but the small business owner who profits $250K doesn’t go out & take a Hawaiian vacation every year as a result. In fact, if a small business owner gets a vacation at all he is considered lucky. Most work 60+ hours per week & can’t take time off. Pres Obama has never owned a business, large or small, & I sometimes wonder if he has any idea that he wants to tax the business as he taxes the individual.
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MOMO7,
Is your whole post a joke? The only person who that people who make $250K are greedy are conservatives. They do that in jest to obscure the actual reasons why the tax rates for high income earners (who have seen their wealth grow enormously over the last 10 years while the middle class has seen it shrink and the deficit has grown (because of wars and tax breaks and bank deregulation of the last Republican president).
This isn’t about who is greedy. But individuals (not businesses, this plan doesn’t raise taxes on businesses) who make more than $250 are not middle class (and what is the rate fore couples anyway? isn’t it $300K? that could be wrong…but that’s not the point anyway). Their tax rates are way lower than Clinton years and WAY lower than Reagan years.
The question for us, is do we add $3TRILLION to the deficit, in order to give those upper class citizens money that they don’t need?
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to the Republican party do not trust him. Learn from your past mistakes… He is a Far left Dem, which means you can not trust him..
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Rand Paul says you don’t want to punish the rich because “we all either work for the rich, or make things for the rich”. Sounds like the land of serfs that Xion warns us about.
Considering how massively in debt we are, I don’t really understand how people making over 250k a year can be so unwilling to help put the situation in order. The tax cuts for the middle class where so small, not only didn’t people notice, many have been led to believe their taxes actually went up.
If the top marginal tax rate goes from 36 to 39% for those making over 250k a year, then someone making 300k a year is going to pay an additional 1500 dollars a annually. Bid deal, you can just about make that up by dropping premium cable TV, or by giving up your morning Starbucks fix and brewing your own. It certainly is greedy to push off the national debt onto the children of the middle class when it would be so easy to pay an additional 3% on earnings over 250k. I make well under the magical figure, but still, considering the debt, I’m not going to complain if my taxes go up a couple of percent.
The Bush tax cuts blew a bigger hole in the budget than Obama ever could, and insisting that these tax cuts remain in place will simply continue to concentrate wealth in the hands of the richest Americans, while the rest of us will be able to do little but watch our standard of living decline. We are where we are, precisely because of Republican policies, and sticking with them will only ensure things get worse.
Remember the good old days of Clinton? He left us with a balanced budget and millions of new jobs. Bush undid all of it, primarily with tax cuts, and now Republicans are fighting to make sure things stay terrible for everyone but the super rich.
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Remember the good old days of Clinton? He left us with a balanced budget and millions of new jobs.—
You forgot who made sure the budget was balanced. An it was not Bill Clinton…
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Then there’s the “death tax”. Not only will the children of the supper wealthy get heaps of cash for simply being lucky enough to be born into it. Conservatives want to ensure they avoid the civic responsibility of paying taxes. They can use our infrastructure, enjoy the security provided by our national defense and police, and have the ability to seek a redress of grievances through our courts, all on the back of working men and women. It’s good to be rich
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It certainly is greedy to push off the national debt onto the children of the middle class
—
That is easy revoke Obama Care, and return the unspent Obama Money. Then go line by line of the special project of Obama and his people the last two years. If the money has not been used cancel the project an return the money.
Guess what then you do not have to raise anyone tax’s.
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kwatson – Conservatives want to ensure they avoid the civic responsibility of paying taxes.—
Guess what those who put that money aside, have already paid tax’s on it. That seem to not get mention.
“all on the back of working men and women.” Who is paying those working men and women? Is it the poor? Is it Obama? Is it the Dem Party? Is it you or me? or is it those mean old rich people?
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You forgot who made sure the budget was balanced. An it was not Bill Clinton…
I guess you think it was the Republican house and Senate, but that doesn’t square with the fact that it was the same Republican controlled House and Senate that blew a big hole in the budget as soon as a Republican President entered office.
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kwatson – there are two type of rich people.. There is holywood elite, the super sport start, the great sings, the tv elite and the elite NACCP, Union Boss, Mob Boss, Kennedy’s, Obama of the world. Who do not employ anyone.
The other type is CEO of the world, who write the pay checks for those hard working men and women.
Why do we not take the death taxs an apply it to the first group and leave the other group alone. So they can take care of the American People.
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kwatson – a few thinks happen that blew a big hole in the budget. 9-11 that about killed the Air Lines and other companies – they need help to survive. The Kathryn happen, about destroy a city an all the business related to the city. – they need help to survive. Then add in 2 wars… You see those on the left forgot, that Bush and the Republican house and Senate, Faced some major problems, that could have destroy many Nations and Governments, but those people and the left love to attacked, help kept this Nations and our Government going forward.
Yeah, some of the spending the last 2 years were outrages, but that came out of a Congress control by Obama and the Dem Party not the Republicans. Bush should have veto many of those spendig bills, but he did not.
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kwatson – a few thinks happen that blew a big hole in the budget. 9-11 that about killed the Air Lines and other companies – they need help to survive. The Kathryn happen, about destroy a city an all the business related to the city. – they need help to survive. Then add in 2 wars… You see those on the left forgot, that Bush and the Republican house and Senate, Faced some major problems, that could have destroy many Nations and Governments, but those people, THAT the left love to attacked, help kept this Nations and our Government going forward.
Yeah, some of the spending the last 2 years were outrages, but that came out of a Congress control by Obama and the Dem Party not the Republicans. Bush should have veto many of those spendig bills, but he did not.
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That is easy revoke Obama Care, and return the unspent Obama Money. Then go line by line of the special project of Obama and his people the last two years. If the money has not been used cancel the project an return the money.
Guess what then you do not have to raise anyone tax’s.
Wishful thinking is always easy. Revoke Obama Care and watch the debt go up. Not down. Obama care is a half measure that doesn’t nearly go far enough to reform our health care system, but it’s a trillion dollars cheaper over the next ten years than doing nothing. Stop Obama’s “special projects” and watch the infrastructure of our nation crumble at an accelerating rate, while technological innovation and preparations of future economic competitiveness languish. Investment in the economy of the future is vital if we want to grow our economy and create jobs in the long term.
The Major problems that Republicans had to face where transformed into a huge debt problem by their willingness to tackle them by pilling debt on out kids. Two wars off the books, a trillion dollar giveaway to the drug companies, and a tax cut primarily for the rich. In eight years Bush and the Republicans created no net new jobs yet the most wealthy Americans doubled there wealth.
Your on the wrong side man. Wake up. Use your head.
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Who is paying those working men and women? Is it the poor? Is it Obama? Is it the Dem Party? Is it you or me? or is it those mean old rich people?
Thank you sir, may I have another? Serfdom here we come.
Please, give me a break. The goal of the mean old rich people is to pay their workers as little as possible in order to maximize their profits. They will move your job to wherever the lowest wage workers skilled enough to do the job live. The primary means by which the citizens of a democracy can ensure that ownership does not take all the fruits of our labor is by progressive taxation. Make the top marginal tax rate as hi as you like. It’s been as high as 91% without calamitous effect, and as a matter of fact, that tax rate was in place during much of the golden years of economic growth. If you maintain hi taxes on income, then the primary path to great wealth is by capital gains. As long as the capital gains tax remain significantly lower than the top income tax, ownership will be compelled to maximize their gains by growing business in the long term instead of maximizing profits for the short term.
The economy tanked as a result of the Bush Tax cuts and years of deregulation, now the Republicans want more of the same . It’s pure madness, except if you’re a millionaire insider, which all Senators are. I don’t doubt that the Tea Party candidates believe the rubbish they spew, for they are simply useful idiots for powers the only vaguely understand.
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