White House officials said Tuesday that President Obama will veto any legislation that allows an elimination of the penalties that come into place should the supercommittee fail to reach an agreement—including allowing the Bush tax cuts to expire on the same day the automatic penalties go into place. “I think if you look at everything that happens in January 2013, it is a compelling argument there’s a need to make real policy,” said one senior administration official. This could be President Obama’s trump card: if Republicans refuse to compromise and raise taxes on the wealthy along with making spending cuts, then the taxes on the wealthy will go up regardless.
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