President Obama sticks to Democratic plan for fiscal cliff

By Park Sae-jin Posted : December 30, 2012, 19:26 Updated : December 30, 2012, 19:26
President Barack Obama has used a final White House meeting to urge Congress to back an interim plan to avoid the “fiscal cliff”, reports say. He reportedly asked Republican and Democratic leaders to back tax cuts for those earning under $250,000.

They have only four days to reach an agreement before across-the-board tax rises and spending cuts take effect. Analysts say sliding over the “cliff” could tip the US into recession and set back the global economic recovery.

There appeared to be no immediate resolution after the meeting, but President Obama is due to make a statement.

As the meeting at the White House began, media reported that the president was making no new offer, instead seeking a simple vote on extending tax cuts for middle class Americans.

There was no word on whether Republican House Speaker John Boehner and Senate minority leader Mitch McConnell were open to a deal or had a counter-offer. Democratic Senate majority leader Harry Reid and senior House figure Nancy Pelosi were also at the White House.

The White House‘s plans to increase taxes on the wealthiest Americans have remained a point of division between the two parties since he won re-election in November.

Many Republicans oppose new taxes as a matter of principle, and are demanding cuts to what they see as deficit-inflating public spending, putting at risk healthcare and welfare benefit schemes popular with Democrats.

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