Obama: I'm Not Caving on Tax Cuts

Barack Obama says he’s not giving in to Republican demands to extend the Bush tax cuts for the wealthy, sharply refuting comments from David Axelrod indicating that he would. (Axelrod, incidentally, has also walked back the comments.) “That is the wrong interpretation, because I haven’t had a conversation with Democratic and Republican leaders,” Obama said in Seoul, according to CNN. “I want to make sure that taxes don’t go up for middle class families starting January 1. That is my No. 1 priority,” Obama said.

But then he added: “I also believe that it would be fiscally irresponsible for us to permanently extend the high income tax cuts. Particularly when we’ve got our Republican friends saying that their number one priority is making sure we deal with our debt and our deficit.” Barack Obama also defended Nancy Pelosi saying she “has been a terrific partner for me,” and should stay in power despite Blue Dog objections. (More Barack Obama stories.)