Obama on a tricky path in 'fiscal cliff' talks

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by Associated Press

WCNC.com

Posted on November 16, 2012 at 6:31 AM

WASHINGTON (AP) -- President Barack Obama is kicking off budget dealings with congressional leaders with new leverage from last week's big win, but he confronts a tricky path to avoiding a market-rattling "fiscal cliff."  

Obama's GOP rivals promise greater flexibility on new tax revenues, but Democrats face pressure from liberal interest groups urging him to take a hard line and avoid cutting big benefit programs like Medicare and food stamps. It's up to Obama to navigate the course toward an agreement. 

At issue is a one-two punch of expiring Bush-era tax cuts and across-the-board spending cuts set to hit in January as punishment for the failure of a gridlocked Congress to reach a deficit-cutting deal last year.  

Economists and business leaders warn the combination could send the economy back into recession
 

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