Obama "modestly optimistic" about a "cliff" deal

After a late-hour meeting with four top congressional leaders at the White House on the "fiscal cliff" that seems to have led to progress, President Obama said he is "modestly optimistic" that a deal can be reached before Tuesday's so-called "fiscal cliff" deadline.

Play Video

Obama: "Modestly optimistic" a "fiscal cliff" deal still possible

In a news conference after the meeting, the president said it was a "good and constructive discussion about how to prevent the tax hike on the middle class." He cautioned however, that he's seen this play before and will "wait and see [if a deal] actually happens."

Sending a warning shot to Congress that they need to act, the president warned, "The American people are not going to have any patience for a politically self inflicted wound to our economy."

The meeting is the first between the four leaders in weeks and took place after the president and Congress cut short their Christmas vacations to work on a last-minute plan to avert the federal spending cuts and the tax increases that economists warn could harm the economy.

The congressional leaders left the 65-minute meeting sounding more optimistic than they have in weeks. The Republican and Democratic leaders in the Senate have been tasked with coming up with a deal that can get through Congress.

"I'm hopeful and optimistic," Senate Minority Leader Mitch McConnell, R-Ky., said on the Senate floor today shortly after returning from the White House.

• Obama "fiscal cliff" meeting called "constructive"
• What falling off the "fiscal cliff" means for you

Senate Majority Leader Harry Reid, D-Nev, called the meeting "constructive" and "positive" and indicated that a deal can be reached between he and McConnell by the time the Senate returns to work Sunday afternoon.

CBS News Chief White House Correspondent Major Garrett reports that the main sticking point between Republicans and Democrats continues to be the income threshold that will see taxes increase. President Obama opened the meeting insisting that taxes increase for households making more than $250,000, but Republicans have long rejected that proposal and House Speaker John Boehner, R-Ohio, failed to pass a proposal through the Republican-led House last week that would raise taxes on those making more than $1 million.

Another area of contention is the extension of unemployment benefits, which expire tomorrow and in 2012 cost $94 billion, according to the Congressional Budget Office.

As for the $110 billion in automatic spending cuts set to go into effect at the beginning of the year, a Republican aide told CBS News the cuts will go into effect unless Congress addresses it at a later date. The aide also said that the debt limit, which is expected to be reached soon, is also not likely to be part of the last-minute agreement.

The president said that if the Senate leaders are unable to reach a deal, he has asked Senator Reid to introduce a "bare bones" piece of legislation that prevents taxes from rising on most Americans in the new year and extends unemployment benefits.

[Type_Z]

There is no free lunch. Shame on Obama pandering for votes by offering free stuff at the expense of honest hard working people.

No one is talking about those who have paid into the system or qualify for programs under the law. Too many people are giving up or not even trying when they are able bodied. Democrats promised to take from the rich, to give to the poor. Democrats don't care if the need is legit or not.

"Revenge". The "rich don't pay their fair share". Political rhetoric. The masses fall for it. Shameful.

[quantum_analysis]

SJC_1 replies: "The fact that oil quadrupled in price during Bush and Cheney leading to the largest economic collapse since the Great Depression had NOTHING to do with it. It is all those Marxists under every bed..."

----------------------


Most of the huge increase in OIL prices can be attributed to the koch brothers becoming an OIL speculation powerhouse by inventing oil derivatives and having republicans deregulate the OIL markets.

Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least 30-50% of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand.

As oil speculation hit record highs in 2011 just like it did in 2008, leading to record high oil prices, Koch's allies in Congress have fought to undermine new reforms and allow unchecked speculation to spiral out of control. Senate republicans, acting with help from Koch lobbyists, added to their record number of filibusters by killing the Energy Markets Emergency Act, which would have limited excessive OIL speculation.

[quantum_analysis]

REALSICKOFIT says: "What worries me as much as the fiscal cliff is the 'welfare cliff', Google it."

---------------------------


Hilarious, since when I Googled it, the first article was:

"Blue State, Red Face: Guess Who Benefits More From Your Taxes?"

"The numbers, for decades now, have been quite clear: With some exceptions, what we regard as red states are sent a whole lot more of your hard-earned tax dollars than the traditional blue states. In effect, supposedly indolent, 'tax and spend' liberals actually subsidize the individualistic, pure, and 'hard-working' lifestyle of our conservative countrymen."

http://www.slate.com/blogs/the_reckoning/2012/10/25/blue_state_red_face_guess_who_benefits_more_from_your_taxes.html

----------------

LOL! Those that whine the most about taxes and welfare, are the ones in the RED welfare states draining the pockets from us in the BLUE states!

[quantum_analysis]

I also loved the premise that anyone making $29,000 per year is making minimum wage like at WalMart, but since they don't let you work 40 hrs/week due to benefits, it would be close to $18/hr. in a 32-hour week -- not even close to the minimum wage of $7.25/hr.

The working poor would love to make $29,000 per year instead of half that at minimum wage! LOL!

[quantum_analysis]

UN_AMERICAN says: "THIS IS ALL BARACK OBAMA'S FAULT"

-------------
UNTRUTHFUL says: "RHINO's are just BO light so whats your point?"

-------------
TYPE_ZERO says: "Obama lies. I don't care what Bush did."




You outright partisan hacks have Obama Derangement Syndrome very bad, and wouldn't know the facts over the republican talking points to save your lives!

[rationall7]

Thank the liberals at CBS for allowing comments after their articles the fascist over at Fox News don't respect the freedom of speach rights for "We the People"

[realsickofit]

What worries me as much as the fiscal cliff is the "welfare cliff", Google it. You are better off making $29 K on welfare than you are making $69 K and not on welfare.

[Type_Z]

Thank the liberals, not a lick of sense in any of them.

[rationall7]

I googled and read it so the woman sounds like she works at Wal-Mart the largest employer in America that also happens to try theirbest to keep their employees below 40 hr/week. So do you or the writer of the article think Wal-Mart employees with kids have the potential or the money to pay for a higher eduction and move up the ladder?

$29K on welfare and most likely works at Wal-Mart owned by republican voting family.

[CBSknows]

"AMERI-CAN-DO"

WE CAN AND WE MUST DO..

Combine a few letters from the words REPUBLICAN DEMOCRAT and they Could Spell..AMERI-CAN-DO & ABSOLUTELY ABSOLUTELY ABSOLUTELY SHOULD..SPELL..AMERI-CAN-DO

NEITHER OF THESE WORDS (REPUBLICAN,DEMOCRAT) SPELLED SEPARATELY CAN SPELL.. "AMERI-CAN-DO" It Takes Both To Spell AMERI-CAN-DO and it will take BOTH PARTIES TO BUILD A BETTER FUTURE FOR ALL OF AMERICA'S CHILDREN & THEIR CHILDREN.

"UNITED WE STAND" and "TEAM WORK WORKS"
(these statements aren't just words they are facts)

Mr. Obama Is NOT just the Democrats President he is "THE PRESIDENT OF THE UNITED STATES" ALL STATES & ALL PARTIES PRESIDENT.. MR. OBAMA.. IS AMERICA'S LEADER YOUR LEADER/OUR LEADER, HE WAS ELECTED BY AMERICA TO LEAD OUR NATION. "SO LET HIM LEAD"

"THIS IS WHY "WE THE PEOPLE PUT HIM IN OFFICE".. WORK WITH HIM "WHATEVER IT TAKES" COMPROMISE WITH THE PRESIDENT & WORK WITH HIM..THIS IS YOUR JOB.

IT CERTAINLY ISN'T PRODUCTIVE FOR ANY PARTY TO HURT AMERICAN'S BY NOT WORKING WITH AMERICA'S LEADER THAT;
"WE THE PEOPLE" ELECTED TO BE OUR PRESIDENT.

"TIME TO TEAM UP FOR THE GOOD OF OUR COUNTRY"

[quantum_analysis]

UNTRUTHFUL says: "So libs like quantum think that higher taxes, more spending an an unlimited credit card is the answer......Your guy is in power so you expect some bacon."

------------------

I see why they call you UNTRUTHFUL, since you live to put words in other people's mouths, as you can only twist the real truth to match your political rhetoric!

The real truth is that the GOP Congress passed the bush tax cuts in 2001/2003 using controversial Congressional reconciliation procedures, and they had sunset provisions that made them expire at the end of 2010, since otherwise they would fall under the Byrd Rule, which would have allowed Senators to block a piece of legislation if it purports significantly to increase the federal deficit beyond a ten-year term.

It was the Democrats that were the real fiscal conservatives back in 2003, seeing deficits beginning to rise while bush was waging TWO WARS, and it took a dickie cheney tie-breaker to finally pass the JGTRRA budget buster!

These budget deficits have only gotten worse since 2001, and unlike saint ronnie who changed course after his 1981 tax cuts, and saw the need for tax increases, the ideological republicans like you saw no reason to change course from tax cuts during WARtime, and have been fiscally irresponsible!

The GOP had to institute the sunset clause in the bush tax cuts, and that time has come, so along with returning the tax rates to more sanity, we also have spending cuts beginning on Jan. 1, 2013 -- both necessary in order to balance our federal budget.

But please, keep up the billy o'liely and rush limbaugh (two multi-millionaires not wanting to pay their fair share) political rhetoric of "gifts" and "free stuff," since it will only lose your republican party of hate and discontent, even more votes in the future!

[quantum_analysis]

Hey UNTRUTHFUL -- what I really have a problem with is far-right teabagging extremists calling themselves fiscally responsible, and calling for even more disastrous tax cuts when taxes have been at record lows causing the post-WWII record low federal revenue of a mere 14% of GDP when the post-WWII average is 18.5% of GDP, when they are actually the most fiscally-reckless Americans in a century!

Please show us patriotic Americans, when in our history we have EVER cut taxes during WARtime, other than during bush's TWO WARS!

[Type_Z]

QA

What do you have you gain or lose in this situation?

You where GOP stands. If you are going to raise taxes to need to cut spending. Google it, Obama has not put spending cuts in any deal. It's coercion, extortion. Why should hard working people hand out more money to the government that literally will blow away in the wind.

I don't care what Bush did. He's not the president. Obama owns it ALL.

[sjbauer1215]

Republicans are the last haven of the "good old boys" who would hold the country hostage for their outdated idealism. This is not what the country wants or needs; it is just what the "good old boys" would dictate to us. I say to the Repubican's - You had your chance, and you blew it - Let someone else try some new strategies and stop blocking ever attempt to improve things. The Republican's last stand attempt to pull the country back into the days of slavery are over. You can't expect to build the country's economy by making the rich richer. It has to start as a way to nuture the blue collar buying base - Bring the blue collar jobs back to the US!

[wizard800]

How about basic fairness. Why should "investment bankers" who ship jobs oversees get a 20% tax break. Wealthy can own a business ans write off jut about everything. Funny tho because its the litte guy who buys all the stuff that makes the big guy rich. Most have figured this out. It's just the red meat wing nuts who in the last 4 years have complained. Not a peep under bush

[quantum_analysis]

WOW! Appears as if the conservatrolls are out in force today, spewing their usual hate and discontent for being in the MINORITY 47%.