President Obama reopens the door to the possibility that lawmakers could allow all of the 2001 and 2003 tax cuts to expire unless Republicans yield to an increase in tax rates on high-income households. In the first press conference of his second term, Obama says that it is easy to imagine going over the fiscal cliff. Obama suggests that if Republicans were too stubborn to even agree on giving middle-class families a tax cut, then everyone was going to end up with a big tax hike starting in 2013. The comments not only spark an outcry from Republicans, but appear to undo House Minority Leader Pelosi's efforts to assuage concerns that lawmakers see inaction as a serious option.
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