Obama, Boehner meet on 'fiscal cliff' deal

Parley over negotiations their first since Election Day

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WASHINGTON -- President Barack Obama and House Speaker John Boehner met Sunday at the White House to discuss the ongoing negotiations over the impending "fiscal cliff," the first meeting between just the two leaders since Election Day.

Spokesmen for both Mr. Obama and Mr. Boehner, R-Ohio, said they agreed to not release details of the conversation, but emphasized that the lines of communication remain open.

The meeting comes as the White House and Congress try to break an impasse over finding a way to stop a combination of automatic tax increases and spending cuts scheduled to kick in at the beginning of next year.

Mr. Obama met in November with Mr. Boehner, as well as Senate Majority Leader Harry Reid, D-Nev., and House Minority Leader Nancy Pelosi, D-Calif. The president spoke by telephone with Mr. Reid and in person with Ms. Pelosi on Friday. The president is traveling to Redford, Mich., today to promote his agenda in a speech to workers at an engine factory.

Mr. Obama has been pushing higher tax rates on the wealthiest Americans as one way to reduce the deficit -- a position that Mr. Boehner and other House Republicans have been steadfastly against. Republicans are demanding steeper cuts in costly government entitlement programs like Medicare and Social Security.

One GOP senator said Sunday that Senate Republicans would probably agree to higher tax rates on the wealthiest Americans if it meant getting a chance to overhaul entitlement programs.

The comments by Bob Corker of Tennessee -- a fiscal conservative who has been gaining stature in the Senate as a pragmatic deal broker -- puts new pressure on Mr. Boehner and other Republican leaders to rethink their long-held assertion that even the very rich shouldn't see their rates go up next year. GOP leaders have argued that the revenue gained by hiking the top two tax rates would be trivial to the deficit, and that any tax hike hurts job creation.

But Mr. Corker said insisting on that red line -- especially since Mr. Obama won re-election after campaigning on raising tax rates on the wealthy -- might not be wise.

"There is a growing group of folks looking at this and realizing that we don't have a lot of cards as it relates to the tax issue before year end," Mr. Corker told "Fox News Sunday."

If Republicans agree to Mr. Obama's plan to increase rates on the top 2 percent of Americans, Mr. Corker added, "the focus then shifts to entitlements and maybe it puts us in a place where we actually can do something that really saves the nation."

Besides getting tax hikes through the Republican-dominated House, Mr. Corker's proposal faces another hurdle: Democrats haven't been receptive to GOP proposals on the entitlement programs. Senate Democratic Whip Dick Durbin, D-Ill., on Sunday was skeptical about proposals to increase the eligibility age for Medicare from 65 to 67. He said he doesn't see Congress addressing the complicated issue of Medicare overhaul in the three weeks remaining before the end of the year.

"I just don't think we can do it in a matter of days here before the end of the year," Mr. Durbin said on NBC's "Meet the Press." "We need to address that in a thoughtful way through the committee structure after the first of the year."

And hard-line fiscal conservatives in the House are holding fast to their position.

"No Republican wants to vote for a rate tax increase," Rep. Jeb Hensarling, R-Texas, chairman of the House Republican Conference, said on ABC's "This Week."

Mr. Obama's plan would raise $1.6 trillion in revenue over 10 years, partly by letting decade-old tax cuts on the country's highest earners expire at the end of the year. He would continue those Bush-era tax cuts for everyone except individuals earning more than $200,000 and couples making above $250,000. The highest rates on top-paid Americans would rise from 33 percent and 35 percent to 36 percent and 39.6 percent.

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