By Brai Odion-Esene

WASHINGTON (MNI) – In the run-up to negotiations that begin later this week
over averting the looming fiscal cliff, the White House Tuesday made clear that
only a balanced plan that does not include tax cuts for the wealthy will secure
President Barack Obama’s approval, and urged immediate action on extending the
tax relief for middle class Americans.

In a daily press briefing that was dominated by questions about the ongoing
soap opera surrounding disgraced former CIA Director David Petraeus, Press
Secretary Jay Carney laid out what the president’s parameters will be heading
into talks with senior lawmakers that kick-off Friday.

Obama is committed to extending the Bush-era tax cuts for 98% of Americas,
Carney said, but will not sign a bill that extends the Bush-era tax cuts for the
top 2% — and such a bill would not pass the Senate — because “it’s not good
policy.”

In addition, the president will not accept a plan that raises taxes on
those making less than $250,000, Carney said.

“Finally, a balanced approach requires substantial revenues,” Carney said,
revenues that should come from those who can afford it.

Echoing comments made by Obama last week, Carney said “compromise should
not be a dirty word in Washington,” as Americans do not want ideology driving
any decisions made during the talks.

Passing a bill that extends the Bush-era tax cuts for those making less
than $250,000 a year would be a way for Capitol Hill to exhibit its newfound
ability to find common ground, he said.

Extending the middle class tax cuts would create certainty for almost all
Americans, help alleviate some of the potential damage that could be caused by
the fiscal cliff, “and would enable us then to move forward to address the many
other issue that we have that confront us,” Carney said.

“That would demonstrate to the American people that Washington can work on
their behalf,” he added.

Carney said Obama has a very specific plan that he will bring to the table
when he sits down with Congressional leaders, one that builds on the $1.1
trillion in spending cuts that was signed into law as part of the 2011 Budget
Control Act. The plan also finds other savings; both in discretionary spending
and entitlement programs — $340 billion from health care entitlements alone, he
added.

The plan also insists that $1.6 trillion in revenue be included to balance
out the cuts in expenditure. “That approach enables us, when taken as a whole,
to reduce our deficits by $4 trillion, begin to really get our fiscal house in
order, and allow us to continue to invest in crucial areas of our economy,”
Carney said.

Obama does not believe the issue of reducing the country’s deficits and
debt should exist in a vacuum, he continued, but rather are part of an approach
that is driven by his number one priority of economic growth and job creation.

Still, “He is not wedded to every detail in it,” Carney said, and added
that there will be opportunities for any lawmaker proposing an alternative
approach “to prove that their numbers add up.”

** MNI Washington Bureau: 202-371-2121 **

–email: besene@mni-news.com

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