Situation down there is nuts

Posted: November 29, 2012

a7209tm--a bc-cliff-obama,1175,1175 TRANSLATED BY: deftext.xrul ORIGINAL WIRE: 121127211442A.0 Obama Plans Direct Appeal to Populace on 'Fiscal Cliff' Proposal (wap) (ATTN: National editors, Financial editors) David Nakamura (c) 2012, The Washington Post.

WASHINGTON - The White House signaled Tuesday that it will attempt to marshal the momentum from President Barack Obama's re-election triumph into another victory at the negotiating table, launching a full-fledged public relations effort to avoid a "fiscal cliff" that could jolt the nation back toward recession.

Administration officials said Obama will hit the road for a campaign-style series of events this week with ordinary Americans, including a visit to a toy manufacturer in suburban Philadelphia on Friday. That trip and others will be aimed at increasing pressure on Congress to reach an agreement on heading off a series of automatic spending cuts and tax increases that are scheduled to begin in January.

The push comes as top Democratic and Republican leaders work to avoid a standoff on the issue, which includes debate about Obama's insistence that tax cuts for the wealthiest Americans enacted by President George W. Bush should expire.

On Tuesday, several leading Democrats called on Obama to demand that Republicans agree to raise the nation's $16.4 trillion debt limit as part of any fiscal deal.

"We would be somewhat foolish to work out something on stopping us from going over the cliff and then a month or six weeks later, the Republicans would pull the same game they did before," said Senate Majority Leader Harry M. Reid, D-Nev., referring to the calamitous debt-ceiling negotiations in the summer of 2011.

Obama's move to mobilize his reelection apparatus for the fiscal debate signals that he intends to follow through on remarks he made during the campaign, when he suggested that major reform required public pressure from outside the Beltway.

"You can't change Washington from the inside," he said at a Univision forum in Miami in September. "You can only change it from the outside." Obama now hopes to make good on that pledge and force his GOP rivals to agree to extend the Bush tax cuts for the middle class but allow them to expire for families earning more than $250,000 in net taxable income.

President Obama will travel to Hatfield, Montgomery County, on Friday to visit TinkerToy manufacturers K'nex Brands and Rodon Group, where he will highlight businesses that rely on middle-class consumers, especially during the holiday shopping season.

The president met at the White House on Tuesday with more than a dozen small-business owners from across the country, and he intends to play host Wednesday to middle-class Americans who would be affected by tax increases if Congress does not act. He also will meet with chief executives from big businesses.

"The primary concern for most people, including myself, was getting some sort of certainty and clarity around the issue," said Mandy Cabot, founder of Dansko, a footwear company in West Grove, Pa., who was among those who met with Obama on Tuesday.

"There was a lot of talk about shared sacrifice and shared prosperity. Compromise was the order of the day." The president's public relations gambit escalated an already tense negotiating atmosphere in Washington, as Republican leaders denounced the move as a "campaign" ploy aimed at bypassing congressional leaders. But Democrats hailed the strategy as evidence that the president had learned from past mistakes in not galvanizing public opinion behind his most important initiatives on health care and previous fiscal standoffs.

- Washington Post

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