The Straits Times
Published on Nov 10, 2012

Obama insists on tax hike for the rich


WASHINGTON  (REUTERS) - Newly re-elected President Barack Obama said on Friday he was prepared to compromise with Republicans to avert a looming United States (US) fiscal calamity but insisted a tax increase for the rich must be part of any bargain.

Mr Obama reminded Republicans that his approach to avoiding steep tax hikes and spending cuts due in January, which could trigger another recession, had just won the backing of Americans at the polls. His spokesman said he would veto any deal which did not include an extra contribution from the wealthiest.

Mr Obama invited congressional leaders to the White House next Friday to discuss the issue, the most pressing challenge as the president starts his second term in office.

Earlier on Friday, Mr John Boehner, the Republican Speaker of the House of Representatives, repeated his party's commitment not to raise anyone's tax rates as part of a deal to address the crisis.