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Thu Nov 29, 2012, 06:51 AM

Obama Is Flexible On Highest Tax Rates [View all]

Source: Yahoo

WASHINGTON—President Barack Obama signaled he wouldn't insist tax rates on upper-income Americans rise to Clinton-era peaks as part of a deficit-reduction deal, showing new flexibility as he tries to accelerate talks with congressional Republicans.

The new clarity of the White House position marks a potentially important moment in Washington's effort to figure out how to handle tax rates that are due to snap higher next year, one of the thorniest elements of the so-called fiscal cliff.

Some Republicans saw it as a hopeful sign that could lead to a compromise. Though GOP leaders remain opposed to raising top rates and want more details on potential entitlement cuts, the White House move opens a range of possibilities for negotiators.

The White House's flexibility, first described by Democrat Erskine Bowles after meetings with Mr. Obama and others, and confirmed by administration officials, could envision tax rates increase from their current levels but less than Clinton-era levels.



Read more: http://finance.yahoo.com/news/obama-flexible-highest-tax-rates-024300413.html



The watering down of our mandate starts

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