Obama Won't Extend Bush Tax Cuts Again

The Huffington Post reports:

In a meeting with House Democrats on Thursday, President Obama stressed that his administration would draw a firm line on taxes and revenues both in the deficit- and debt-reduction debates and in the buildup to the 2012 elections.

According to multiple meeting attendees, the president reiterated on several occasions that a deal to raise the country's debt ceiling would include revenue increases, even as Republican lawmakers insist that such a deal should be restricted to spending cuts and entitlement reforms.

"I've been very clear about revenues as a part of a balanced package, and I will continue to be," said Obama.

Underscoring his commitment, Obama noted taxes would be a defining area of contrast with Republicans on the campaign trail. He insisted that he would not compromise again on his position that the tax rates for the top earners be raised to pre-Bush levels.

"'Whatever we agree on, we are still going to have plenty to argue about in 2012,'" a senior administration official said, paraphrasing the president. "'I've said I'm not going to renew the tax cuts for the top two percent. We might agree on tax reform or simplification, but on the upper-income tax cuts we are just going to have to agree to disagree.'"

Two House Democrat attendees confirmed the substance of those remarks. One of those lawmakers, who agreed to speak about the event on condition of anonymity, said that members were "worried that the Obama Administration would cave [in debt ceiling negotiations] because Republicans were willing to default on our debt if they don’t get what they want."

The President responded by saying it was vital to have revenues as part of the mix, stressing that a budget can't be balanced on non-defense discretionary spending or the "backs of the most vulnerable." Obama added, according to the member, that, "he would not support extending the Bush tax cuts for the top two percent again no matter what hostages Republicans took."