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Re-elected, Obama heads back to divided government

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FILE -In this Friday, Feb. 20, 2009, file photo, President Barack Obama listens as Vice President Joe Biden speaks in the East Room of the White House. Asked to name the one step they'd push most urgently if they were the newly re-elected President Barack Obama, a dozen leading economists advise President Barack Obama to sidestep the "fiscal cliff" during his second term of office. Economists say that the package of tax increases and deep spending cuts that will take effect in January unless Congress reaches a budget deal by then, could tip the U.S. economy back into recession next year. (AP Photo/Ron Edmonds, File)

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WASHINGTON (AP) — One day after his surprisingly comfortable re-election, a triumphant President Barack Obama headed back to the White House and divided government on Wednesday with little time left for a compromise with Republicans to avert spending cuts and tax increases that threaten a new recession.

The president also is looking ahead to top-level personnel changes in a second term, involving three powerful Cabinet portfolios at a minimum.

Republicans headed into a season of potentially painful reflection after retaining control of the House but losing the presidency and falling deeper into the Senate minority. One major topic: the changing face of America.

"We've got to deal with the issue of immigration through good policy. What is the right policy if we want economic growth in America as it relates to immigration?" said former Republican Party Chairman Haley Barbour. Obama drew support from about 70 percent of all Hispanics, far outpacing Republican challenger Mitt Romney.

There was little time to celebrate for the winners, with a postelection session of Congress scheduled to convene next Tuesday. By common agreement, the main order of business is the search for a compromise to keep the economy from falling off a so-called "fiscal cliff."

The White House said Obama had made postelection phone calls to congressional leaders and reiterated a commitment to bipartisan steps to "reduce our deficit in a balanced way, cut taxes for middle class families and small businesses and create jobs."

"The president said he believed that the American people sent a message in yesterday's election that leaders in both parties need to put aside their partisan interests and work with common purpose to put the interests of the American people and the American economy first," the statement said.

Senate Majority Leader Harry Reid, D-Nev., told reporters that any solution should include higher taxes on "the richest of the rich." That was in keeping with Obama's election platform, which calls for the expiration of tax cuts on income over $200,000 for individuals and $250,000 for couples.

Reid said he spoke with Republican House Speaker John Boehner as well as Obama Tuesday night as the election results became known, and he declared that "of course" a compromise was possible on the overall issue.

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