'Under pressure' GOP may yield to Obama's tax plan on rich Americans to avert fiscal cliff
Republican leaders are under mounting pressure from within their own ranks to allow President Barack Obama to raise taxes on wealthy Americans to stop the US going over 'fiscal cliff'.
John Boehner, the House Speaker, was urged by senior Republicans to concede over a new top rate of income tax in an attempt to win cuts to America's expensive entitlement programmes.
According to the Telegraph, Bob Corker, a senator for Tennessee, said Republican leaders should acknowledge their 'weak hand' in the negotiations to avert across-the-board tax hikes and deep cuts to public spending from January 1.
"There is a growing group of folks that are looking at this and realising that we don't have a lot of cards on the tax issue before year-end," Corker told Fox News.
Economists have warned that the combination of higher taxes on all American households and 600 billion dollars of cuts to government spending could throw the country back into recession, the report said.
Obama has said that he will not sign a new deal without raising the top 35 percent tax rate, but has signalled that he would be willing to compromise at 37 per cent rather than the 39 of his opening bid, the report added.
According to the report, Corker became the fourth Republican Senator to warn that the party must strike a deal or risk being seen as holding the US economy hostage in order to protect the rich Americans.
He was joined by Tom Coburn, a Republican Senator for Oklahoma, who reiterated his desire for Republicans to "accept a tax increase as a part of a deal to actually solve our problems," the report added.