Obama Demands Tax Rises for Rich over Fiscal Cliff

BBC: Newly re-elected President Barack Obama has said the wealthy must pay more taxes under any political settlement to avert a looming budget crisis.

He said Congress must act against the so-called fiscal cliff, a package of tax rises and spending cuts due early next year.

But in a duelling news conference, Republican House Speaker John Boehner said tax rises would not be acceptable.

Budget analysts warn the US will tip into recession unless a deal is struck.

Mr Obama has repeatedly called for the affluent to pay more, but such a plan is anathema to Republicans.

The fiscal cliff would see the expiry of George W Bush-era tax cuts at the end of 2012, combined with automatic, across-the-board reductions to military and domestic spending. (+ videos) » | Friday, November 09, 2012

Pen in Hand, Obama Warns People 'Like Me' Must Face Tax Hikes

THE DAILY TELEGRAPH: Barack Obama has warned that people "like me" must face tax hikes, firing his first post-election shot in a year-end budget showdown with Republicans

Speaking from the White House, the president said he was not wedded to every detail of his plan and that he was open to compromise - but warned that he would reject any proposal that was "not balanced".

However, he said that raising taxes on the wealthiest Americans - including himself in that demographic - must be part of a plan to reduce the deficit, calling on Congress to pass a bill that would prevent Bush-era tax cuts from expiring for all but the rich.

"We can't just cut our way to prosperity. If we are serious about reducing the deficit, we have to combine spending cuts with revenue, and that means asking the wealthiest Americans to pay a little more in taxes," he said.

He also declared that his re-election on Tuesday showed that the majority of Americans agreed with his approach, and that they "won't tolerate dysfunction".

Pulling a pen from his blazer pocket, he declared: "I've got the pen, I'm ready to sign the bill," as he urged lawmakers to work together and take action. » | Source: AFP | Friday, November 09, 2012