Obama: Tax Must Rise for the Rich

In his first speech since being re-elected this week, U.S. President Barack Obama claims a mandate to raise taxes on the rich.

Elad Benari, Canada ,

Obama and Biden in the East Room of the White
Obama and Biden in the East Room of the White
AFP/Nicholas Kamm

In his first speech since being re-elected this week, U.S. President Barack Obama on Friday claimed a mandate to raise taxes on the rich to pay for deficit reductions, firing his first post-election shot in a year-end budget showdown with Republicans.

"We can't just cut our way to prosperity. If we are serious about reducing the deficit, we have to combine spending cuts with revenue, and that means asking the wealthiest Americans to pay a little more in taxes," he said, according to AFP.

The president also announced in a punchy, televised White House statement, his first public appearance since his election night address, that he would call top Republican and Democratic leaders to the White House next week.

The talks will focus on averting the so-called "fiscal cliff" -- a catastrophic blend of automatic tax rises and harsh spending cuts due to come into force on January 1, which could cause a new recession.

Obama signaled willingness to compromise on the details of a deficit reduction plan, but he made clear that his bottom line principle involved rejecting the Republicans' flat refusal to raise any taxes.

"This was a central question during the election, it was debated over and over again. On Tuesday night, we found that the majority of Americans agree with my approach," AFP quoted Obama as having said.

"I want to be clear. I'm not wedded to every detail of my plan. I'm open to compromise. I'm open to new ideas. I refuse to accept any approach that isn't balanced.

"I'm not going to ask students and seniors and middle class families to pay down the entire deficit while people like me making over $250,000 aren't asked to pay a dime more in taxes. I'm not going to do that," he said.

Obama's approach left room for negotiation with Republicans and could possibly permit a compromise that keeps income tax rates the same for the rich, but involves a removal of deductions on investment income.

On Thursday, Republican presidential candidate Mitt Romney's senior campaign adviser in Florida hinted that Romney lost the state, even though a final result was not yet declared.

As the results of the election came in on Tuesday night, Romney at first would not concede to Obama, saying he did not agree with the declaration that the president had won the swing state of Ohio.

Eventually, however, Romney conceded the election to Obama. The popular vote difference across the U.S. was only an insignificant 0.3%, reported Fox News, a number which probably would have resulted in a recount if not for the electoral college system.

(Arutz Sheva’s North American Desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Arutz Sheva articles, however, is Israeli time.)