Obama says he 'won't compromise' on taxes

REDFORD, Mich. (AP) — President Barack Obama

warned Monday that he "won't compromise" on his demands that the

wealthiest Americans

pay higher tax rates, digging in on the chief sticking point

between the White House and Republicans as they seek a way to

avert the "fiscal cliff."

Obama brought his pressure-Congress campaign to the heart of industrial America, ripping lines from his own re-election bid

as the nation inched closer to a perilous economic cliff. He said the country couldn't afford a "manufactured" crisis and

pledged to cheering auto workers that he would fight to extend tax cuts for the middle class before they expire at year's


"That's a hit you can't afford to take," Obama declared.

Obama's campaign-style trip to Michigan came

one day after he and House Speaker John Boehner met privately at the

White House.

While neither side would characterize the meeting, the mere fact

that the two leaders talked face-to-face was seen as progress

in negotiations to avoid a series of year-end tax hikes and

spending cuts.

Republicans have long opposed Obama's call

for higher tax rates on the wealthy, but some GOP lawmakers are

suggesting the

party relent on taxes in order to win concessions from the

president on changes to benefit programs such as Medicare. Still,

Boehner's office indicated Monday that the speaker wasn't ready to

take that step.

"The Republican offer made last week remains

the Republican offer," said Brendan Buck, a Boehner spokesman. He was


to a GOP plan that offered $800 billion in new revenue over the

next decade through reducing or eliminating unspecified tax

breaks on upper-income earners, but not by raising tax rates.

In Michigan, Obama was more restrained in

his remarks, never directly criticizing Republicans and keeping his

focus more broadly

on the need for Congress to act quickly to prevent a tax increase

for middle class families. During his last trip outside

of Washington, D.C. — to a toy factory in Pennsylvania on Nov. 30 —

the president likened raising taxes on the middle class

to a "lump of coal" for Christmas, a "Scrooge Christmas."

Obama saved his most pointed criticism for closely-watched measures in the state legislature that would prevent requiring

non-union employees to financially support unions at their workplace. Drawing cheers, the president said the right-to-work

legislation was more about politics than economics. "What they're really talking about is giving you the right to work for

less money," Obama said.

At the Daimler Detroit Diesel plant, Obama

hailed the company's plans to spend an additional $100 million to boost


in the U.S. He noted the importance of the auto industry's supply

chain nearly four years after the government rescued carmakers

General Motors and Chrysler.

White House press secretary Jay Carney,

speaking to reporters traveling with Obama, reiterated that there could

be no deal

on the fiscal cliff without tax rate increases on the wealthiest

Americans. But he said the president remains optimistic that

both sides can reach an agreement.

"He's eager to get a deal and he believes a deal is possible," Carney said.

Obama's plan would raise $1.6 trillion in

revenue over 10 years, partly by letting decade-old tax cuts on the

country's highest

earners expire at the end of the year. The president wants tax

rates to rise on incomes over $200,000 for individuals and

$250,000 for couples. Individuals earning more than $200,000 and

couples making more than $250,000 would see their top rates

rise from 33 percent and 35 percent to 36 percent and 39.6

percent, respectively.

Boehner's plan, in addition to calling for $800 billion in new revenues, also would cut spending by $1.4 trillion, including

by trimming annual increases in Social Security payments and raising the eligibility age for Medicare from 65 to 67.

The White House is trying influence the

process with the public's help. The president's re-election campaign

emailed supporters

Monday, asking them to call their representatives and urge them to

back Obama's fiscal cliff plan, even suggesting a script

they could read.

It was the latest example of the White House

trying to put its massive voter database to use during the fiscal cliff


in the same way it did during the presidential campaign.

Business leaders, meanwhile, emphasized the

need to reach an agreement before year's end, raising the costs of

creating uncertainty

in the marketplace.

"The millions of people that work for us,

their lives are in flux. And this is incredibly critical we get this

done now,"

said Jeffrey Immelt, GE's chief executive and head of the

presidential advisory council on competitiveness, in remarks aired

Monday on "CBS This Morning."

GOP mavericks are putting increased pressure

on their party's leaders to rethink how they approach negotiations with


in the wake of a bruising national election that left Democrats in

charge of the White House and Senate. Sen. Bob Corker,

R-Tenn., told "Fox News Sunday" that if Republicans agree to

Obama's plan to increase rates on the top 2 percent of Americans,

"the focus then shifts to entitlements, and maybe it puts us in a

place where we actually can do something that really saves

the nation."

But such ideas face an uphill battle. Many

House Republicans say they wouldn't vote for tax rate hikes under any


And GOP leadership could lose leverage in the negotiations if it

raises the rate on upper-income earners without getting anything

substantial in return like entitlement reform.

Democratic leaders have suggested they are unwilling to tackle entitlement spending in the three weeks left before the fiscal

cliff is triggered.