Obama: tax hikes on middle class could lead to another recession

WASHINGTON Wed Nov 14, 2012 2:28pm EST

U.S. President Barack Obama pauses while addressing his first news conference since his reelection, at the White House in Washington November 14, 2012. REUTERS/Kevin Lamarque

U.S. President Barack Obama pauses while addressing his first news conference since his reelection, at the White House in Washington November 14, 2012.

Credit: Reuters/Kevin Lamarque

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WASHINGTON (Reuters) - President Barack Obama said on Wednesday a tax hike on the middle class could result in slowing retail sales for the holidays, and could affect business planning and hiring.

"We could go back into recession. It would be a bad thing," Obama said, describing a scenario where lawmakers fail to agree on the tax and spending issues associated with the "fiscal cliff" by year-end deadlines.

(Reporting by Roberta Rampton; Editing by Sandra Maler)

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