Obama: No ‘fiscal cliff’ deal without higher tax rates on rich

Last week, the White House delivered to Capitol Hill its opening proposal: US$1.6 trillion in higher taxes over a decade, a possible extension of the temporary Social Security payroll tax cut and heightened presidential power to raise the national debt limit without the approval of Congress.

In exchange, President Obama would back US$600 billion in spending cuts, including US$350 billion from Medicare and other health programs. But he also wants US$200 billion in new spending for jobless benefits, public works projects and aid for struggling homeowners.

His proposal for raising the ceiling on government borrowing would make it virtually impossible for Congress to block him going forward.

Copyright 2012 The Associated Press

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