Wary meeting: Obama, GOP leaders pledge tax talks

By Jim Kuhnhenn

Associated Press

Published: Tuesday, Nov. 30 2010 2:57 p.m. MST

WASHINGTON — Heralding a new era of divided government, President Barack Obama and congressional Republicans pledged warily to seek common ground on tax cuts and reduced spending Tuesday in their first meeting since tumultuous midterm elections.

Obama also made a strong plea to Senate Republicans to permit ratification of a new arms control treaty with Russia by year's end, raising the issue first in a session in the White House's Roosevelt Room and then in a follow-up meeting without aides present, officials said.

No substantive agreements on essential year-end legislation emerged from the session, and none had been expected. Instead, the meeting was a classic capital blend of substance and style, offering a chance for Obama, House Speaker-in-waiting John Boehner and Senate GOP leader Mitch McConnell to become more comfortable in one another's presence.

"The American people did not vote for gridlock. They didn't vote for unyielding partisanship. They're demanding cooperation and they're demanding progress," the president told reporters, referring to elections that gave the GOP control of the House and a stronger say in the Senate.

Back at the Capitol after the meeting, Boehner said, "I think that spending more time will help us find some common ground," and he credited Obama with opening the session by saying he had not reached out enough in the past to Republican leaders.

Even so, there was little or no attempt to minimize the differences that divided the parties during the election campaign, including a disagreement on legislation to extend Bush-era tax cuts due to expire at year's end.

"It is the view of 100 percent of Senate Republicans, and a number of Senate Democrats as well ... that we ought to treat all taxpayers the same," McConnell told reporters.

Obama and most Democrats, by contrast, want to extend existing tax cuts to all workers with family incomes under $250,000 but allow them to expire for those at higher levels.

In a sign of urgency, Obama and leaders of both parties appointed a small group to begin talks immediately on resolving the issue so lawmakers can approve a compromise before wrapping up their work.

One possible compromise is for Democrats to agree to extend the tax cuts for all, and for Republicans to drop their insistence that the lower tax rates be made permanent. An extension for a few years would allow both sides to claim victory while limiting the cost to the government at a time when deficit reduction is a major priority of both parties.

Officials said there was relatively little discussion of another major issue confronting lawmakers in the current postelection session, the need for a new spending bill so the government can run without interruption. Current spending authority expires on Dec. 3, and majority Democrats intend to extend that to Dec. 17.

The next steps are unclear, though, and a struggle is possible between Democrats who are about to lose their majority in the House, and Republicans who won the election with a call for significant spending cuts.

In addition, Speaker Nancy Pelosi, D-Calif., said it was important for Congress to pass an extension of unemployment benefits before heading home, officials said, adding that Obama concurred.

The president has called repeatedly in recent days for the Senate to ratify the proposed new START treaty with Russia. In remarks to reporters, he called it essential for the national security and said it would permit the United States to "monitor Russia's nuclear arsenal, reduce our nuclear weapons and strengthen our relationship with Russia."

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