Obama sets tone for budget battle over wealth tax

US president Barack Obama said last night his re-election means Americans support his approach for avoiding a looming “fiscal cliff” that threatens a new recession — and that his approach means the country’s wealthiest people will have to pay more in taxes.

A White House spokesman later said Obama will veto any bill extending tax cuts for those making more than $250,000 (€195,000) a year.

Obama’s brief public comments were his first since his re-election, and they set the tone for upcoming tense talks with congressional Republicans on avoiding a combination of deep spending cuts and the expiration of Bush-era tax cuts that automatically take effect Jan 1, and total $800bn next year alone.