WASHINGTON (AP) — In a challenge to Republicans, President Barack Obama urged Congress on Wednesday to extend expiring tax cuts immediately for all but the highest income earners as a way to eliminate half of the so-called fiscal cliff that threatens to send the economy back into recession.

“What I’m not going to do is to extend Bush tax cuts for the wealthiest 2 percent that we can’t afford and according to economists will have the least positive impact on the economy,” the president said at his first news conference since winning re-election last week.

Standing in the East Room of the White House, Obama pointedly noted he had campaigned on a platform that called for allowing tax breaks to expire as scheduled on Dec. 31 for the wealthiest income earners.

“A modest tax increase on the wealthy is not going to break their backs,” Obama said. “They’ll still be wealthy.”

House Speaker John Boehner and Senate Republican leader Mitch McConnell have both said they are eager to compromise with the president to avoid the immediate tax increases and spending cuts scheduled to take effect at the end of the year. But at the same time, they have said they won’t agree to raise tax rates for the wealthy.

Boehner arranged a late afternoon news conference in the Capitol to respond to the president’s remarks. The congressional leaders are slated to meet with Obama at the White House on Friday for the first time since the election, and are expected to agree to designate aides to begin the search for a compromise.

Obama met on Tuesday with allies from labor and liberal groups, and invited a group of CEOs to the White House for a mid-afternoon session, also to focus on the threat posed to the economic recovery by the combination of tax increases and spending cuts.

At the news conference, he laid out a two-step process for an overall compromise — immediate extension of all the expiring tax cuts except the top rate, followed by a comprehensive agreement in 2013 to overhaul the tax code and the government’s big benefits programs, which include Medicare, Medicaid and Social Security.

Obama signed legislation two years ago extending the Bush tax cuts in their entirety after saying he wouldn’t.

Asked why this time will be different, he said, “what I said at the time was what I meant, which is that this was a one-time proposition.”

Now, he said, legislation that keeps most of the cuts in place but not those for the upper-income earners would be “actually removing half the fiscal cliff.”

Asked if he viewed it as a deal-breaker if Republicans refused to allow the top tax rate to revert to 39.6 percent from the current 35 percent, he said, “I just want to emphasize I am open to new ideas if the Republican counterparts or some Democrats have a great idea for us to raise revenue, maintain progressivity, make sure the middle class isn’t getting hit, reduces our deficit.’”

White House press secretary Jay Carney said the president would bring to the table a proposal for $1.6 trillion in new taxes on business and the wealthy when he begins discussions with congressional Republicans, a figure that Obama outlined in his most recent budget plan. The targeted revenue is twice the amount Obama discussed with Republican leaders during debt talks during the summer of 2011.

Carney said the figure, combined with $1.1 trillion in spending cuts already signed into law, would reduce deficits by $4 trillion.

Earlier, Sen. Dick Durbin of Illinois, part of the Democratic leadership team, said that many “many Republicans believe now is the time to sit down and talk more revenue.” Durbin said the number of GOP lawmakers in the Senate willing to work toward accommodation now totals 20.

But Durbin also said “there is a great distance” between Republicans in the House and Senate, “and basically it comes down to the question of whether Speaker Boehner is willing to look for a bipartisan solution.”

Durbin told MSNBC he thinks lawmakers should “use this fiscal cliff” to resolve a problem that has plagued Congress for four years.

The president pledged to raise taxes on the rich during his first term but backed off his stance in late 2010 after Republicans seized control of the House in the midterm election. During his meeting with labor leaders, Obama said he was not going to bend on letting tax cuts expire for top wage earners, according to a participant in the meeting who spoke on the condition of anonymity to discuss the private session. The president said the tax issue was clear during the election and said he had extended those enacted during the George W. Bush administration once and would not do so again, the participant said.

The CEOs have urged Congress to extend the Bush-era tax cuts until a tax overhaul can be reached and prevent the spending cuts from taking place. The executives say the uncertainty over the fiscal cliff is hurting the nation’s business climate and preventing hiring.

Obama will meet with several CEOs, including the heads of Aetna, Honeywell, Wal-Mart, Procter & Gamble and Ford.

The participants include members of the Campaign to Fix the Debt, a group founded by Alan Simpson and Erskine Bowles that has pushed for a long-term plan to fix the nation’s debt and deficits.

Simpson, a former Wyoming senator, and Bowles, a former White House chief of staff, served as co-chairs of Obama’s bipartisan National Commission on Fiscal Responsibility and Reform, which proposed $3 in spending cuts for every $1 in additional revenues.

Among the CEOs attending the meeting are General Electric CEO Jeff Immelt, who chairs Obama’s jobs council, and American Express CEO Kenneth Chenault and Xerox CEO Ursula Burns, who are members of the council.