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Obama Sells Fiscal Cliff Agenda To Jamie Dimon, Warren Buffett And Other Major Business Leaders

Obama To Buffett: Please Help With The Fiscal Cliff
Reuters
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FILE - In this Feb. 15, 2010, file photo President Barack Obama congratulates Warren Buffett after presenting him with a 2010 Presidential Medal of Freedom in an East Room ceremony at the White House in Washington. In his weekly radio and internet address Saturday April 14, 2012, Obama urged Americans to ask their member of Congress to support the "Buffett Rule," named after the billionaire investor who says he pays a lower tax rate than his secretary. Obama says the nation can't afford to keep giving tax cuts to the wealthiest, "who don't need them and didn't even ask for them." (AP Photo/Carolyn Kaster)

(Deletes paragraph four to remove reference to Jelinek speaking at Democratic convention)

By Mark Felsenthal

WASHINGTON, Nov 18 (Reuters) - President Barack Obama's intensive lobbying to avert big year-end tax hikes and spending cuts resumed over the weekend as he spoke with senior corporate chieftains, including JPMorgan Chase's Jamie Dimon and legendary investor Warren Buffett.

Dimon has been a harsh critic of tougher rules imposed on the financial services industry after the 2007-2009 recession, but last month backed Obama's goal of raising taxes on top earners to avert the so-called fiscal cliff.

The president, who is on a four-day Asia trip, also spoke with Apple's Tim Cook, Boeing's Jim McNerney, and Costco's Craig Jelinek, a White House official said.

"The president reached out to and spoke with each of these business leaders as a part of his continuing conversations and outreach on the need to find a balanced deficit-reduction solution that protects the middle class and continues to move our economy forward," the White House official said.

Unless Congress and the administration act, individual income tax rates will rise across the board and $109 billion in spending cuts will go into effect on Jan. 1. The so-called fiscal cliff may cut the federal budget deficit but is also forecast to drag the economy back into recession.

Obama began negotiations with congressional leaders last week to avoid the economic shock. The key sticking point for Republicans is his insistence that rates for top earners be allowed to rise to 39.6 percent from 35 percent.

Republicans agree that more government revenue is needed to trim the budget deficit, but they don't want to raise tax rates to do it.

As part of efforts to pressure Congress to support his approach, the president has invited business, labor and civic leaders and non-profit groups to the White House to press his case. His re-election was expected to give him some leverage in the negotiations.

Dimon said last month that it was "terrible policy" to let the fiscal cliff deadline draw so near before beginning talks. He also said he would be willing to see his tax rate rise if it meant avoiding any economic shock.

Dimon and the other executives could not immediately be reached for comment. (Editing by Philip Barbara)

Before You Go

10 Ways You've Already Fallen Off The Fiscal Cliff
Residential Energy-Efficiency Credits(01 of10)
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No tax breaks for being green in 2012. Homeowner investments in energy-efficient double-pane windows or high-efficiency refrigerators, don't get any tax benefit. More than 43.5 million Americans have filed and received this benefit, with an average reduction in tax liability of $765.84, according to H&R Block. (credit:Shutterstock)
Mortgage Insurance Premiums(02 of10)
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Bad news for homeowners: They cannot write off mortgage insurance premiums on 2012 tax returns. Congress can act to reauthorize these deductions retroactively to Jan. 1, 2012, and extend them through the end of 2013, but that would cost the government $1.3 billion over the next decade, the Los Angeles Times reports. (credit:AP)
Adoption Credit(03 of10)
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Taxpayers who have out-of-pocket adoption expenses or who adopted a child with special needs can only claim the adoption credit to the extent of their tax liability. While the portion of the credit not taken into account in 2012, up to $12,650 per child, is carried forward to future years, the benefit is no longer fully refundable, according to tax experts. (credit:Shutterstock)
Alternative Minimum Tax(04 of10)
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If the alternative minimum tax legislation is not retroactively patched for 2012, current law could result in an increased tax liability for up to 34 million Americans. According to a study by the Tax Institute at H&R Block, an average family making $85,000 with children in college could see their tax liability soar from a $1,056 refund to owing $1,400. (credit:Shutterstock)
American Opportunity Tax Credit(05 of10)
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Tuition bills will be higher starting on Jan. 1 because families will lose the $2,500 American Opportunity Tax Credit, which ends in 2012 unless Congress takes action. More than 2.4 million Americans claimed this deduction in 2009, resulting in a combined decrease in taxable income of $5.4 billion, according to tax experts. (credit:Shutterstock)
Payroll Tax Credit(06 of10)
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Paychecks will be smaller starting Jan. 1, 2013. An American making $50,000, for example, will lose $80 in monthly pay after the credit ends. The temporary credit also has lowered the amount workers contributed to Social Security by 2 percent. (credit:Shutterstock)
Educator Expense Deduction(07 of10)
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Teachers lose their $250 maximum deduction on expenses related to buying school supplies. This credit expired at the end of 2011, and teachers won't be able to claim this benefit on their 2012 taxes unless Congress takes action. In 2009, more than 3.8 million teachers claimed this benefit for a combined deduction of $9.7 billion, according to H&R Block. (credit:AP)
Sales Tax As An Itemized Deduction(08 of10)
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Taxpayers will no longer have the option of claiming an itemized deduction for state sales tax in lieu of state income tax. This expiration will have a greater impact on taxpayers who reside in a state with sales tax, but no income tax, including Alaska, Florida, Texas, Nevada, Washington, South Dakota, and Wyoming. (credit:AP)
IRA Retirement Funds(09 of10)
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Taxpayers over age 70½ no longer have the option of directing their income from an IRA distribution to a charitable organization. Starting this year, older taxpayers must include the distribution in income and claim a charitable deduction, resulting in a potentially higher tax bracket and a need to itemize instead of claiming the standard deduction, according to H&R Block. (credit:Shutterstock)
Later refunds(10 of10)
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As if losing all those tax credits was not bad enough, the earliest date to file a 2012 tax return electronically has moved back to Jan. 22, 2013. As the IRS has indicated that refunds could take as long as 21 days to process this year, a refund in January to cover Christmas credit card payments, winter heating bills, or rent is unlikely. (credit:AP)
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