Obama presses case on 'fiscal cliff' with Dimon, Buffett

WASHINGTON Mon Nov 19, 2012 10:51am IST

US President Barack Obama speaks during a joint media conference with Thai Prime Minister Yingluck Shinawatra at Government House in Bangkok November 18, 2012. REUTERS/Sukree Sukplang

US President Barack Obama speaks during a joint media conference with Thai Prime Minister Yingluck Shinawatra at Government House in Bangkok November 18, 2012.

Credit: Reuters/Sukree Sukplang

Related Topics

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

WASHINGTON (Reuters) - President Barack Obama's intensive lobbying to avert big year-end tax hikes and spending cuts resumed over the weekend as he spoke with senior corporate chieftains, including JPMorgan Chase's Jamie Dimon and legendary investor Warren Buffett.

Dimon has been a harsh critic of tougher rules imposed on the financial services industry after the 2007-2009 recession, but last month backed Obama's goal of raising taxes on top earners to avert the so-called fiscal cliff.

The president, who is on a four-day Asia trip, also spoke with Apple's Tim Cook, Boeing's Jim McNerney, and Costco's Craig Jelinek, a White House official said.

Some, like Jelinek, who spoke at the Democratic convention, are long-time Obama supporters.

"The president reached out to and spoke with each of these business leaders as a part of his continuing conversations and outreach on the need to find a balanced deficit-reduction solution that protects the middle class and continues to move our economy forward," the White House official said.

Unless Congress and the administration act, individual income tax rates will rise across the board and $109 billion in spending cuts will go into effect on January 1. The so-called fiscal cliff may cut the federal budget deficit but is also forecast to drag the economy back into recession.

Obama began negotiations with congressional leaders last week to avoid the economic shock. The key sticking point for Republicans is his insistence that rates for top earners be allowed to rise to 39.6 percent from 35 percent.

Republicans agree that more government revenue is needed to trim the budget deficit, but they don't want to raise tax rates to do it.

As part of efforts to pressure Congress to support his approach, the president has invited business, labor and civic leaders and non-profit groups to the White House to press his case. His re-election was expected to give him some leverage in the negotiations.

Dimon said last month that it was "terrible policy" to let the fiscal cliff deadline draw so near before beginning talks. He also said he would be willing to see his tax rate rise if it meant avoiding any economic shock.

Dimon and the other executives could not immediately be reached for comment.

(Editing by Philip Barbara)

FILED UNDER:

SAARC Summit

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters Poll

Reuters Poll

GDP growth to slow to 5.1 pct, but no rate cut yet  Full Article 

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

OPEC heading for no output cut despite oil price plunge  Full Article 

RBI Rate Hopes

RBI Rate Hopes

Markets pricing in rate cut, despite wary RBI  Full Article 

Land Disputes

Land Disputes

Disputes over land for industry on the rise in India, angering locals - charities  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage