Obama says letting U.S. taxes rise would hurt world economy

Reuters Middle East

WASHINGTON, Nov 28 (Reuters) - President Barack Obama said

on Wednesday that failure to avoid looming "fiscal cliff" tax

increases would reverberate beyond U.S. borders.

"It would be bad for the economy, it would be bad for those

families, in fact it would be bad for the world economy," Obama

told reporters at the White House as he met with his cabinet.

Obama and congressional leaders are negotiating over how to

avoid approximately $600 billion in tax hikes and spending cuts

that would begin in 2013 and that analysts say would push the

U.S. economy back into recession.

The president has proposed maintaining existing tax rates

for all but the top two income tax brackets, but congressional

Republicans are opposed to any tax increases.

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