Obama presses GOP on taxing rich to avert ‘ cliff’

WASHINGTON ( AP) — President Barack Obama challenged congressional Republicans Wednesday to let taxes rise on the wealthiest Americans on both economic and political grounds, noting he campaigned successfully for re- election on the point and contending it would instantly ease the threat of the “fiscal cliff” plunging the nation back into recession.

“A modest tax increase on the wealthy is not going to break their backs,” Obama said of the nation’s top income earners. “They’ll still be wealthy,” he said at his first news conference since winning a second term.

At the same time, the president stressed he was amenable to compromise on other approaches from Republicans who say they will refuse to raise tax rates. “I believe this is solvable,” he said during the news conference.

Asked if it would be a deal- breaker for Republicans to refuse to allow the top tax rate to revert to 39.6 percent from the current 35 percent, he sidestepped. “I just want to emphasize I am open to new ideas if the Republican counterparts or some Democrats have a great idea for us to raise revenue, maintain progressivity, make sure the middle class isn’t getting hit, reduces our deficit.”

Wall Street wasn’t encouraged that agreement was becoming more likely. The Dow Jones industrial average dropped 185 points for the day.

The president’s remarks were his first extended public discussion of the issue that is dominating the postelection session of Congress, and they followed statements earlier in the week from House Speaker John Boehner, R- Ohio, and Mitch McConnell of Kentucky, the Senate GOP leader.

Both men have said they, too, want a compromise and have said they are willing to support additional tax revenues as part of a deal that includes tax reform and measures to recast the government’s largest benefit programs. But they appear to rule out any legislation that raises tax rates.

Boehner arranged a rebuttal news conference for late in the afternoon.

McConnell issued a statement calling on Obama to “propose a specific plan that includes meaningful entitlement reforms to strengthen and protect these programs for future generations.” He referred to Medicare, Medicaid and Social Security.

The president has moved aggressively this week to lay down markers for any negotiations, first meeting with labor leaders and representatives of liberal groups at the White House, then welcoming a delegation of corporate chief executives for a private session moments after wrapping up his news conference.