Obama makes concessions to avoid fiscal cliff

18 December 2012

Policymakers have moved closer to resolving the ongoing dispute over the US fiscal cliff, it has emerged today (18 December).

Barack Obama has agreed to concessions that, it is hoped, will result in consensus being reached among officials in order to make sure the policy reforms coming into force on 31 December do not have a huge and lasting effect on the US economy, insiders have told Reuters.

During a meeting with House of Representatives speaker John Boehner yesterday, the president indicated he is now seeking $1.2 trillion from higher tax revenues, partly by raising the tax rates of people who earn in excess of $400,000 annually.

This represents a marked increase on the original yearly threshold of $250,000 put forward by Mr Obama and it is thought this concession may act as something of a breakthrough in negotiations.

For instance, the source commented: "We view this as a good offer that shows we have met the Republicans more than halfway on spending and halfway on revenues."

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development