“Dont play brinkmanship with me” warned Barack Obama as he called on Republicans to compromise in crucial fiscal cliff talks. Addressing US business leaders, the president claimed that Congressional budget negotiations were progressing but far too slowly.
“Now, we’ve seen some movement over the last several days among some Republicans,” said President Obama. “I think there’s a recognition that maybe they can accept some rate increases as long as it’s combined with serious entitlement reform and additional spending cuts. Another way of putting this is we can probably solve this in about a week.”
Both Democrats and Republicans have submitted proposals to reduce the deficit – Republicans prefer spending cuts while the Democrats favour tax increases.
“We have a debt problem that is out of control. There are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates which we believe will harm our economy,” said John Boehner, House of Representatives, Speaker.
With less than a month to go before the onset of draconian measures due to take effect unless Congress acts, both sides remain at odds.
If they fail economists predict another recession and public patience is running out.