Business & EconomyObama warns of ‘Scrooge Christmas’ without fiscal deal

Obama warns of ‘Scrooge Christmas’ without fiscal deal

-

He said President Obama’s plan to raise $1.6tn (£1tn) of revenue over 10 years was not a “serious proposal”.
Planned tax rises and spending cuts due to take effect on 1 January could send the US back into recession, economists warn.
On Friday, Mr Obama toured the Rodon Group manufacturing facility, where parts for the children’s toy K’nex are made.
The Democratic president said it was the type of company that depended on middle-class customers to buy its goods, adding it would be hurt if ordinary Americans faced a tax rise.
In a speech at the factory, Mr Obama said both parties would have to “get out of our comfort zones” in order to negotiate a deal on the fiscal cliff, and pledged he would be willing to do the same.
He said that if Congress did not extend soon-to-expire tax breaks for the middle-class, it would be like receiving a “lump of coal” at Christmas.
“That’s a Scrooge Christmas,” Mr Obama added.
Tax cuts passed during the presidency of George W Bush are due to expire under the fiscal cliff.
Mr Obama favours extending the break for households earning below $250,000. But he wants taxes to rise for those on income above that sum.
Mr Boehner said that asking the top 2% of US taxpayers to pay more would deal a “crippling blow” to a fragile economy.
He also criticised as inadequate spending cuts that were proposed on Thursday by the Obama administration.
Treasury Secretary Timothy Geithner put forward a plan to congressional leaders that would raise $1.6 trillion in higher taxes over a decade.
The proposal also envisages spending more money to help the unemployed and struggling homeowners.
And it called for savings of as much as $400bn from Medicare and other benefit programmes over 10 years.
Mr Boehner told reporters on Friday: “There’s a stalemate. Let’s not kid ourselves. Right now, we’re almost nowhere.”
Some Republicans have said they would consider increased tax revenue as part of a deal to avoid the fiscal cliff.
But the White House believes that simply ending tax deductions would not address the yawning budget deficit.
White House press secretary Jay Carney has indicated Mr Obama would not support any deal that did not increase tax rates on the wealthiest.
The fiscal cliff would suck about $600bn (£347bn) out of the economy.
The measures were partly put in place within a 2011 deal to curb the yawning US budget deficit.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Out Of School Children: LSD Director Says 960 Girls Enrolled Into Schools In Adamawa

By; JACOB ONJEWU DICKSON No fewer than 960 out-of-school girls have been enrolled back into schools in Adamawa State, Executive...

Trauma: CRUDAN Organizes 3-day Workshop For Christian Clerics In North West

By; GRACE JAMES, Kaduna Christian Rural and Urban Development Association of Nigeria (CRUDAN) North West Zone has organized  a three-day...

Mr LA Sets Agenda For Kaduna South PDP Councillors, Sues For Cohesion

By; AMOS MATHEW,  Kaduna As the newly elected council officials in Kaduna State set for inauguration, a chieftain of the...

2021 MWAN Award: Dr Batulu Muhammad Honoured, Amidst Encomiums From Adamawa People

By; JACOB ONJEWU DICKSON The people of Adamawa State have showered praises on Dr. Batulu Isa Muhammad over her recent...
- Advertisement -spot_imgspot_img

Kogi Journalists Forum Hails Gov Bello For Actualizing Dream Of Oil Producing State

By; GRACE JAMES, Kaduna Kogi Journalists Forum has said that the ovation that greets the inclusion of Kogi State, naturally...

Ex International Boxer To FG: Release Nnamdi Kanu In Interest Of Justice, Peace

By; JACOB ONJEWU DICKSON Mazi Ikechukwu Okoronkwo, ex international boxer and sports ambassador, has called for the release of Nnamdi...

Must read

Buhari lauds Nigerian Army for rescuing another Chibok girl

President Muhammadu Buhari on Saturday saluted the efforts of...

Irregular salary payment in Bauchi subjects people to hardships – critic

By; MOHAMMED KAWU, Bauchi. A public commentator and critic in...

You might also likeRELATED
Recommended to you