REUTERS-the u.s. Congress moved by thumb on Tuesday to compromise on taxes and spending, but a firm deal to stave off the "fiscal cliff" at the end of the year still seemed miles away, despite the growing pressure from business interests for action.
President Barack Obama was set to meetings with business leaders on Tuesday and Wednesday and then a trip to a factory in Pennsylvania on Friday his case on taxes.
Fresh from his November re-election, Obama wants to expand 6 low income tax for middle class Americans, but let tax rates rise on income over 250,000 dollars per year per family.
Republicans opposed to this position and favor low income tax rates extension, adopted during the Government of former President George w. Bush, for all income groups.
Without action by Congress, the Bush tax cuts expire at year-end and rates for most taxpayers will rise.
The dispute with the tax rate is the central obstacle to an agreement which prevented the nation plunging of the fiscal cliff, a convergence of an estimated $ 600 billion in tax increases and spending cuts that threatens that would lead to another recession.
"There remains no clarity on the final status of the Bush tax cuts, which must be resolved before you can move forward with the rest of the fiscal cliff," said Chris Krueger, an analyst at Guggenheim securities Washington research group.
The debate raged in Congress, as the Government another improvement in the planned American business expenses reported in October, while the American stock prices were largely flat on Wall Street. The Dow Jones industrial average was about 12,950, to 15 percent from a year ago despite market concerns about fiscal policy.
Republicans have not shifted from their position against a tariff tax increases, but a few are open to the public have a promise of no new taxes that the rumored most of them have held for years, tax revenues, otherwise higher rates to put on the negotiating table.
REID SLAMS NORQUIST
The promise-enforced by his group Americans for reform of the taxation and fiscal frugality activist Grover Norquist came for renewed criticism from Senate Democratic Leader Harry Reid.
"For years, Norquist has bullied lawmakers ... So I was glad to see a few Republicans in Congress distance itself from Norquist this week, "Reid said on the floor of the Senate.
"Several Republican lawmakers have said revenue should be on the table at fiscal cliff negotiations. Now it's time for the Republicans are happy talk into action. "
Norquist Tuesday on Fox News and said talk of Republicans backing vocals away from his promise appeared was "a complete media-created frenzy."
Also on Tuesday, Dick Durbin, a senior Senate Democrat and close ally of the Obama Liberals that reform of the costly colleague, called Medicare and Medicaid gezondheidszorg's, signalling democratic compromise in an area where they have determined opposition to change.
' Progressives should are prepared to talk about ways to ensure the long-term viability of Medicare and Medicaid for the elderly and the poor, "Durbin said in excerpts from a speech.
But he added Medicare and Medicaid not part of the current negotiations must have to avert the fiscal cliff. That plane was Durbin firmly with Obama, urging extension of middle-class tax cuts for 98 percent of Americans.
As part of a multi-pronged pressure on taxes, Obama will meet with a group of small business owners on Tuesday. On Wednesday he will host leaders of larger companies. He will then on Friday, a factory of the Rodon group, a small toy company in Pennsylvania visits.
Obama's visit and his meetings in the White House are designed to pressure Republicans extending tax cuts for middle-income people and terminate them for richer families.
A pressure group called Fix the debt – including budget deficit hawks and business leaders scheduled for Wednesday at his own press conference-insisting Congress "to establish a plan that would send us away from the fiscal cliff and further economic instability."
Senate Republican Leader Mitch McConnell ripped in Obama for planning to hit the road later this week to promote his tax agenda. "Rather than sit down with legislators of both parties and work out an agreement, he is back out on the campaign trail," McConnell roared on the floor of the Senate.
"We already know that the President is a very good campaigner. What we don't know is whether he has the leadership qualities needed to lead his party until a bipartisan agreement. "
(Thomas Ferraro, Richard Cowan, Kim Dixon Reporting, Patricia Zengerle, Jeff Mason and Mark Felsenthal. Writing by Kevin Drawbaugh. By Karey Wutkowski edit and Jackie Frank)
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