Gridlock as usual or new era of compromise? Washington stares down 'fiscal cliff' crisis after election

[WestVirginiaRebel]

Fox News:

He won't be inaugurated until Jan. 20, but for all intents and purposes, Wednesday is Day One of President Obama's second term as he and congressional leaders shift their immediate focus to a crucial lame-duck session.

Together, they face the challenge of dealing with the so-called "fiscal cliff" -- a potentially disastrous mix of massive defense cuts, cuts to social programs and tax hikes set to kick in come January, less than two months from now.

So the big question a day after Obama's decisive electoral-vote victory is, will it be gridlock as usual or did Tuesday night's results herald a new era of compromise? The answer is especially urgent in the face of a policy threat that some economists say could trigger another recession if left un-addressed.

“If there is a mandate, it is a mandate to work together,” House Speaker John Boehner said Wednesday, adding, “2013 will be different.”

The balance of power in Washington was unchanged after Tuesday's results, and leaders in both chambers came out of election night calling for bipartisanship -- but also reaffirming their parties' dueling positions, which so far have prevented any compromise from being reached.

On the expiration of the Bush-era tax rates, Republicans have refused to allow a tax hike on anyone, saying it could harm small businesses, while Democrats have pushed for an increase on households making more than $250,000, or the top 2 percent of incomes.

Boehner said Tuesday night there is "no mandate for raising taxes." He told Fox News earlier that Obama "knows we're not going to raise taxes on American small businesses. He knows it." Boehner predicted a "real brawl" if the president doubles down on that.

However, Fox News' exit polls from Tuesday night, show that only 14 percent of voters said taxes were the biggest economic problem they faced, and 60 percent of voters said they thought taxes should increase for everyone or for just top earners.

Only 35 percent of voters agreed with Republicans that the rates should stay the same for everyone.

Boehner said Wednesday afternoon that he is willing to work with the White House and Democrats in Congress to tackle “massive debt” as well as the looming “fiscal cliff," though he suggested his focus will be on closing tax loopholes more than raising rates.

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Deal-making in the aftermath of defeat?