[TheRealVille]

(Reuters) - President Barack Obama said on Friday he was prepared to compromise with Republicans to avert a looming U.S. fiscal calamity, but insisted a tax increase for the rich must be part of any bargain.

Obama, who was re-elected on Tuesday, 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 that did not include an extra contribution from the wealthiest.

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

Earlier on Friday, 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.

He too claimed a mandate from the elections, in which voters gave Republicans continued control of the House.

The statements showed the two men, who have been divided on the issue for two years, were still far apart, leaving doubts over whether the "fiscal cliff" could be averted. Congress is expected to address it when it reconvenes next week for a post-election lame-duck session.

"Boehner and Obama are using softer tones, but the substance of what they're saying hasn't changed very much, and it doesn't look like there's been any movement from the last time they had a budget discussion," said Stan Collender, a former congressional budget aide.

The automatic across-the-board budget cuts due in January were scheduled in August 2011 as part of a deal to raise the U.S. debt ceiling. Aimed at cutting the federal budget deficit, the planned measures could take an estimated $600 billion out of the economy and severely hinder economic growth.

In his first event at the White House since beating Republican Mitt Romney in Tuesday's election, Obama called on Congress to work with him to produce a plan.

"I'm not wedded to every detail of my plan. I'm open to compromise. I'm open to new ideas," he said. "I'm committed to solving our fiscal challenges, but I refuse to accept any approach that isn't balanced."

"If we're 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.

Obama said the majority of Americans believed those making more than $250,000 a year should pay more taxes, "So our job now is to get a majority in Congress to reflect the will of the American people. I believe we can get that majority."

"I was encouraged to hear Speaker Boehner agree that tax revenue has to be part of this equation," he added.

While striking a conciliatory tone toward the Republican House majority, Obama said voters supported his ideas, including raising taxes on the wealthiest Americans.

"I just want to point out, this was a central question during the election. It was debated over and over again. And on Tuesday night, we found out that the majority of Americans agree with my approach," he said.

Tax cuts for people of all incomes enacted under President George W. Bush are due to expire in January and Obama said he was willing to extend them for those making less than $250,000 immediately but not for those making more. His spokesman, Jay Carney, said Obama would veto any bill that extends cuts for the top 2 percent of wage earners.

MARKETS WORRIED

Concerned that U.S. growth might stall if the fiscal cliff becomes reality, financial markets at home and abroad are paying close attention to the political wrangling. U.S. stocks cut gains on Friday after Obama spoke.

Britain's top shares fell on Friday, as worry over the U.S. fiscal cliff overshadowed robust U.S. consumer sentiment data. The FTSE 100 index closed down 0.1 percent.

Boehner called on Obama to play a more active role in addressing the issue.

"This is an opportunity for the president to lead. This is his moment to engage the Congress and work towards a solution that can pass both chambers," Boehner told a news conference.

Top Senate Republican Mitch McConnell named taxes as the main bone of contention.

"I was glad to hear the president's focus on jobs and growth and his call for consensus. But there is no consensus on raising tax rates, which would undermine the jobs and growth we all believe are important to our economy," he said.

While disagreeing on immediate measures to avert the fiscal crisis, Obama and Republicans may find common ground in calls for enactment over the next six months of a larger package of deficit reduction measures, including a rewrite of U.S. tax laws.

Obama sent a signal to Republicans of a willingness to compromise by calling for reduction in healthcare costs including in federal programs for the poor and the elderly, a favorite issue of fiscal conservatives.

"I intend to work with both parties to do more - and that includes making reforms that will bring down the cost of healthcare so we can strengthen programs like Medicaid and Medicare for the long haul," he said.

The non-partisan Congressional Budget Office reiterated on Thursday that if left unaddressed, the abrupt fiscal tightening would knock the economy back into recession, with unemployment rates soaring back to about 9 percent. The rate is now 7.9 percent.

It also warned of a crisis if the United States did not stem the growth of its exploding deficit.

http://www.reuters.com/article/2012/11/0...WV20121109

[LWC]

It seems as if the Republicans are willing to help this time and the Democrats are willing to help. Obviously, the Democrats will get more of what they want, but if the Republicans will play nice, they can get some things they want as well.

[Harry Rex Vonner]

Boehner's majority in the House was also reelected. He needs to hardball any "negotiations".

Obama's argument that a majority of voters want higher taxes on "rich" people is without merit. A majority of voters don't like brussels sprouts. Does that mean that we must ban brussels sprouts?

Try to keep in mind that poor people don't create jobs. That's a fact.

And, as for meeting with Obama concerning job creation, that is ridiculous. No one is less qualified to talk about job creation and capitalism than Obama. He has never created a job. He has never met a payroll. Actually, he has never worked in the private sector- not even as a newspaper delivery boy or in a gas station. As the saying goes (cleaned up a little, of course) he doesn't know poop from Shinola when it comes to actual jobs and work.

[vector]

Boehner's majority in the House was also reelected. He needs to hardball any "negotiations".

Obama's argument that a majority of voters want higher taxes on "rich" people is without merit. A majority of voters don't like brussels sprouts. Does that mean that we must ban brussels sprouts?

Try to keep in mind that poor people don't create jobs. That's a fact.

And, as for meeting with Obama concerning job creation, that is ridiculous. No one is less qualified to talk about job creation and capitalism than Obama. He has never created a job. He has never met a payroll. Actually, he has never worked in the private sector- not even as a newspaper delivery boy or in a gas station. As the saying goes (cleaned up a little, of course) he doesn't know poop from Shinola when it comes to actual jobs and work.

da if they don't come up with a deal after the people in this country elected him in jan they will automatic kick in

[TheRealVille]

Boehner's majority in the House was also reelected. He needs to hardball any "negotiations".

Obama's argument that a majority of voters want higher taxes on "rich" people is without merit. A majority of voters don't like brussels sprouts. Does that mean that we must ban brussels sprouts?

Try to keep in mind that poor people don't create jobs. That's a fact.

And, as for meeting with Obama concerning job creation, that is ridiculous. No one is less qualified to talk about job creation and capitalism than Obama. He has never created a job. He has never met a payroll. Actually, he has never worked in the private sector- not even as a newspaper delivery boy or in a gas station. As the saying goes (cleaned up a little, of course) he doesn't know poop from Shinola when it comes to actual jobs and work.

How many seats were up for grabs? Obama isn't up for re-election, they are. They better not play hardball, America is watching. The poor might not create jobs, but a lot of the middle do.

[Hoot Gibson]

How many seats were up for grabs? Obama isn't up for re-election, they are. They better not play hardball, America is watching. The poor might not create jobs, but a lot of the middle do.

Every seat in the House was up for grabs and Republicans gained seats. Every seat will be up for grabs in 2014 again because House members serve two year terms. Republicans will most likely pick up more seats then because the party that controls the White House almost always loses seats in mid-term elections.

[vector]

Every seat in the House was up for grabs and Republicans gained seats. Every seat will be up for grabs in 2014 again because House members serve two year terms. Republicans will most likely pick up more seats then because the party that controls the White House almost always loses seats in mid-term elections.

i don't think they will this time if they do what they have done the last 2 years
the people will throw them out

[the other guy]

According to economists these tax hikes will run the government for eight days. Now if he can work out something on the other 357 days.

[Hoot Gibson]

i don't think they will this time if they do what they have done the last 2 years
the people will throw them out

If people were unhappy with what House Republicans have done the past two years, then they would have thrown them out when they had the opportunity last week. Instead, the Republicans retained a solid majority of seats in the House.

[Hoot Gibson]

Every seat in the House was up for grabs and Republicans gained seats. Every seat will be up for grabs in 2014 again because House members serve two year terms. Republicans will most likely pick up more seats then because the party that controls the White House almost always loses seats in mid-term elections.

Correction - Republicans retains a solid majority of seats in the House but will not gain seats when all votes are counted. The current count is 234 to 194, in favor of Republicans and the best the Democrats can do is 201 seats - if they win all of the remaining undecided seats.

[Harry Rex Vonner]

How many seats were up for grabs? Obama isn't up for re-election, they are. They better not play hardball, America is watching. The poor might not create jobs, but a lot of the middle do.

Those in the middle who create jobs normally vote Republican. If they are successful enough to create jobs, they are smart enough to vote against someone who is anti-business.

But, I am pleased that you recognize the fact that poor people do not create jobs- or income tax revenue for that matter.