Fiscal Cliff

Obama: Ending Tax Cuts for Rich Resolves Half of 'Cliff'

CNBC.com with Wires
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In a challenge to Republicans, President Barack Obama urged Congress on Wednesday to extend expiring tax cuts immediately for all but the wealthiest Americans as a way to eliminate half of the  "fiscal cliff" that threatens to send the economy back into recession.

Jim Watsom | AFP | GettyImages

In his first news conference in months, Obama insisted the economy cannot afford a tax increase on all Americans, and he urged Republicans to support an extension of existing tax rates for households earning less than $250,000.

"If we right away say 98 percent of Americans are not going to see their taxes go up — 97 percent of small businesses are not going to see their taxes go up," he said. "If we get that in place, we're actually removing half of the fiscal cliff."

Obama said the top priority in solving the country's fiscal crisis "must be jobs and growth."

He said he was confident that Republicans can join Democrats in avoiding the fiscal cliff before more than $600 billion in automatic spending cuts and tax increases take effect on Jan. 1.