CNBC: Obama Appoints Geithner, Lew to Seek Tax Deal With GOP

[Patricia M. McBride]

Apparently, Mr. Obama can't negotiate anything which is probably why folks are saying the START treaty is so bad. If he can't even talk to the republicans, what can the next 2 years be like and to send Geithner (the only thing he knows how to do is evade paying taxes I thought).

Published: Tuesday, 30 Nov 2010 | 1:17 PM ET

The debate over whether to extend Bush-era tax cuts remained unresolved Tuesday, as President Obama and congressional leaders departed from a hour-long meeting on tax policies for the new year.

AP Immediately following the meeting, congressional Republicans said the discussion with President Barack Obama was a positive one.

"The American people did not vote for gridlock," Obama said in a press conference following the meeting. "Today we had the beginning of a new dialogue that I hope...will help break through the noise and produce real gains."

Republican leaders want to extend tax cuts for all Americans, including the wealthy. President Obama has long-insisted on preserving tax relief for middle-class Americans only.

However, in one sign of action, Obama said he appointed Treasury Secretary Tim Geithner and budget director Jack Lew to work with congressional Republicans and Democrats to come up with a deal on taxes in the next couple of days.

If no agreement is reached before Congress breaks for the holidays, taxes on all Americans would increase, a new year shocker that would increase pressure on Washington to act.

Immediately following the meeting, congressional Republicans said the discussion with President Barack Obama was a positive one in which both sides agreed to spend more time working together and finding common ground on tax and other tough issues.

Senate Minority Leader Mitch McConnell said both the president and members of Congress from both parties agreed to designate representatives to negotiate a compromise on deciding which tax cuts to extend when they expire at the end of next month—and for how long.

House Majority Leader John Boehner, who will be House speaker when the new Congress convenes in January, said he told the president, "spending more time will help us find common ground."

Prior to the meeting, Democrats seemed to be in disarray about how to proceed on tax policy. New York Democratic Senator Charles Schumer has floated a possible compromise to keep the tax cuts for those making less than $1 million a year.

Senate Majority Leader Harry Reid has made clear he would like to hold a vote on extending the rates only for those up to the $250,000 level to underscore the Democratic position even though such a vote is sure to fail.