Obama on "fiscal cliff": I'm happy to be flexible

President Barack Obama speaks at the Nunn-Lugar Cooperative Threat Reduction (CTR) symposium being held at the National Defense University at Fort McNair in Washington, Monday, Dec. 3, 2012. / AP Photo/Charles Dharapak

Updated 2:55 p.m. ET

In his first television interview since his re-election, President Obama pushed his proposal to avert the so-called "fiscal cliff" but also signaled that he is open to some movement on some key components of his proposal, including raising taxes on the wealthy.

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Although Mr. Obama told Bloomberg TV a deal is not possible without an increase to the tax rate for those making over $250,000, he would not answer specifically when asked if the rate on the wealthy must increase from the current 35 percent to the pre-Bush rate of 39.6 percent, signaling there may be wiggle room on how much of a hike he'll demand.

"I'm prepared to make some tough decisions," Mr. Obama said. However, he reaffirmed that no matter what, the tax rate on the wealthy must go up. "We're not going to be able to get a deal without it."

When asked for clarification, White House spokesperson Jay Carney said "rates have to go up," but spoke in a similar line as his boss by refusing to draw a line in the sand over the percentage. He said the Republicans have yet to offer a proposal that would raise tax rates on the wealthy.

In response to the president's latest pronouncement, House Speaker John Boehner said in a statement that he is "willing to make concessions, but the President must be willing to lead." He also said he is "eager" to continue talks with the president but called on him to "respond with a proposal that...can pass both chambers of Congress."

Boehner and House GOP leaders put forward their first offer Monday. Although it offers no specifics, it provides an outline of a deal that would reduce the deficit by $2.2 trillion. As for revenue, the Republicans' proposal says it would increase revenue by $800 billion by closing tax loopholes and limiting deductions.

The president rejected Boehner's revenue proposal outright, saying enough revenue cannot be garnered through deductions and loopholes only. "It doesn't work," he said.

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Mr. Obama said he is open to broader tax reform but that it cannot be done in "two weeks." He said a "down payment" should be passed now that raises rates for the wealthy but extends rates for the rest of wage earners, and then Congress work on broader tax reform when it returns next year.

With broad tax reform next year, he said "at that point," rates might be able to go down as long as adequate revenue is raised."I'm happy to work with them."

As for another sticking point in the negotiations, entitlement programs, the president also indicated an openness to make concessions to programs like Medicare. Based on the negotiators opening arguments, both sides are far apart. Boehner's proposal calls for $900 billion in mandatory spending cuts, much of it coming from Medicare, compared to $600 billion the president proposed.

"I'm happy to be flexible," Mr. Obama said, adding that he says he's not going to get "100 percent" of what he wants. "I am willing to look at anything that strengthens" Medicare, he said. When asked whether he would support raising the eligibility age for Medicare from 65 to 67, the president demurred but didn't outright reject the idea.

The president also seemed to indicate he is willing to cut slightly more from discretionary spending, which includes education, disaster relief, national parks and other government programs.

"There's probably more cuts that we can squeeze out," he said, but he continued to point to the $1 trillion worth of cuts Congress passed last year without any increases in revenue, and he said he's not going to cut programs that hurt the middle class, seniors and college students.

In what seems like an effort to repair his strained relationship with some in the business community, Mr. Obama also said he'd like to give business leaders a more prominent role in his administration, but he blamed the Senate confirmation process that causes private-sector executives to "shy away" from government service.

[samael2014]

I'm middle class earning $50-$100K and I look forward to the restoration of Social Security taxes. Why? Because I'm going to need Social Security when I retire, and thanks to Congress using it and treating like discretionary tax revenue -- STEALING FROM IT, AND NOT ONLY NOT PAYING IT BACK, but acting like it's a large piece of the federal budget's entitlement spending that somehow makes ENORMOUS Defense related spending/WASTE that ACTUALLY dwarfs all other discretiony spending we pay taxes for (not a fund like Social Security, Medicare and Medicade which we invest in).

Why does this fiscal cliff have to even acknowlede people who are getting tax "relief" they shouldn't be getting, because employer's aren't paying them enough -- STAGNANT WAGE GROWTH.

GREED -- economic class divergence, and generational selfishness -- and IGNORANCE about Defense waste and how much it really costs future taxpayers who may not have the luxury of meeting their true defense needs, because of nationalistic hysteria allowing uncontrolled flooding of taxpayer dollars into contract cash cows while people die because OBama is such an incredible ignorant and arrogant loser of a President.

That's what's driving us over a fiscal cliff. Future historians will know who to blame -- and why these arrogant, ignorant and selfish pieces of human waste -- primarily baby boomers BTW -- got away with it at the expense of everyone else, including a nations future.

[sandiegopete]

I would feel better about Obama's claimed flexibility if I believed the Tea Party, who controls the Republican Party, would also provide at least an iota of flexibility. Alas, they do not. When the other side is inflexible you better not be flexible.

[kevind33]

I agree there is NO sense being flexible if the other side is NOT FLEXIBLE so the REPUBLICANS are now reaping what they have sowed! Personally I don't know how the people in OHIO can tolerate having the Speaker of the House represent them but having attended college in Kent, Ohio I know they are less than intelligent maybe a total IQ of 90

[Verascity]

Nobody backs down like Obama.

He was the better of the two presidential candidates, but unlike Romney who would have sold seniors down the river without a blush, Obama is so flexible that the end result may be nearly the same.

He's giving in to the GOP's blackmail, and shame on him for that.

[Saul_Monella]

Wow, Rachael Madcow led the parade to do Lord Obama's bidding. I'm glad someone is an audience for their pablum. They don't realize they'd be pulling the plow too!

[wave150]

http://commonsensepolitics.me/

[BULLYDOGGE1]

Ah yes, this reminds me of the mid 60's when I went for my Army pre-induction physical and specificllay the last step. The last step consisted of a line of guys, with nothing on but their shorts, facing forward; we were told to turn around, drop our shorts, bend over, and grab our ankles(you get the picture, about 25 guys with their butts exposed for rectal checks by the docs). So here we are, once again, with our butts exposed and ready to take it again in the butt for these elected fools in Washington; they need to get a real job and find out what's like to work for a living.

[marconola]

We called it BOHICA. Bend Over Here It Comes Again

[cleric77]

I think Mr. Obama means to give our nation a list of examples on how he is flexible.
I think he has stated: "It my way, or the highway over the cliff" to our nation.

[Verascity]

Better over the cliff than under the jackboots of the GOP.

[andy7orb]

What will raising the rate on the wealthy accomplish? The money brought in will do nothing at all. We are not taxed too little, the government spends too much, it's that simple.

[hillzhaveays]

That is a fact Andy, and as such, will be universally ignored or denied by all of the partisan hacks infesting this site.

[Verascity]

Returning to the tax rates they payed before Crony-in-Chief W, is no real hardship to the greedy Trump-clones in this country.

We all know what trickled down to the rest of us, and it wasn't prosperity.

Maybe you could check out the tax rates paid by the wealthy in more prosperous times - it might teach you something,

[olyboy]

Why would the press repeat without question the obvious lie of a proven liar? Obama is the most inflexible president in our history and a man whose word is a joke. CBS and the rest of the media continues to play along with his broken promises and outright misstatements. Republicans attempt to find a middle ground only to be accused of trying to sell "fairy dust" while Obama proposes not only to raise taxes but to raise spending and our national debt even more. How will we ever save our country from fiscal suicide if we continue to spend what we don't have? This is rediculous and the media just looks the other way.

[curtis41]

Obama is the inflexible one in these negotiations. As proposed from the administration, these plans are designed and have the effect of being impossible to pass. There is no significant progress on Social Security reform, nor Medicare from the administration. Up the age for retirement under Social Security, allow younger workers to have their own retirement system, it could not provide any less than the miserable 3% the fed got, and then spent all the money above monthly payouts. Put the affordable health care money BACK into Medicare. Businesses are now hiring 20-30 hour weekly employees to get out from under the considerable Obamacare costs, while insurance companies are not going to get the volume they envisioned and were led to believe. Let's see, the Democrats refuse to cut spending, will not reform or even address Social Security and Medicare and Medicaid, and only project the compulsion to redistribute wealth, even if it makes everyone else's taxes go up in the bargain. Boehner deserves hazard pay for having to bring his argumentative homies on board and deal with a totally inflexible administration, bent on taking us over the fiscal cliff, and then blaming it on the Republicans. So what else is new? I say give them the middle class tax cut, do not address the 2% top increase to penalize success and small businesses in the deal, and then vote present, just like you know WHO did. This is more sound than the administration failing to negotiate in good faith and further attempt to divide Americans by race and class. Our forefathers would turn over in their graves at this spectacle.

[1pheasant1]

Too funny! The party of "too big to fail" and Wall Street bailouts is now concerned about small businesses.

[Larnan5]

Stop talking about Social Security and Medicare as entitlements. I worked for over 60 years and paid for my social security. Medicare charges by the monthly deduction from the social security payment, there are deductibles and co-pays. The real entitlements are the perks and benefits that the legislators WE pay vote for themselves. The get the best our money can buy.