The White House said today it was willing to negotiate with Republicans on tax cut extensions.
In the first possible policy shift since Democrats suffered heavy election losses two days ago, White House spokesman Robert Gibbs signalled Mr Obama was open to talks on a temporary extension for the wealthy of Bush-era tax cuts that expire at the end of the year.
The fight over tax cuts looms as one of the biggest clashes since the election between the president and Republicans, who will control the House of Representatives in the new Congress that convenes in January.
Mr Obama invited top leaders from both parties to a meeting and a dinner at the White House on November 18, and he said the tax cuts will top the agenda.
He has insisted on keeping the tax cuts for families making less than $250,000, but let them expire for wealthier Americans, while Republicans want them extended for all income levels. If no agreement is reached, all Americans will see higher tax rates on January 1.
White House spokesman Robert Gibbs said the president was willing to discuss keeping all lower tax rates, at least temporarily.
"He'd be open to having that discussion and open to listening to what the debate is on both sides of that," Mr Gibbs told reporters, later emphasizing the cuts for high earners would not continue forever.
"The president does not believe - and I think would not accept - permanently extending the upper-end tax cuts," Mr Gibbs added.
Agencies