December 05, 2010


Obama Open to Deal on Tax Cuts

After the U.S. Senate defeated two attempts by Democrats to extend the Bush-era tax cuts for the middle class permanently, President Obama told Democratic leaders "he would be open to a temporary extension of the Bush-era tax cuts for the affluent, but he would demand concessions from the GOP," the Wall Street Journal reports.

The concessions he's seeking: "a year-long extension of unemployment insurance and tax cuts for middle-income and working poor Americans that were in the stimulus law but also expire at the end of this year. Those include the Making Work Pay tax cut of $400 for middle-income individuals and $800 for couples, a tuition tax credit, an expanded earned income and child credit for the working poor, and a payroll tax credit for new hires."

Politico: "The doomed votes mean Democrats ultimately may need to agree to a deal that runs contrary to their campaign promises over the past 10 years. Rather than eliminating the upper-end tax cuts, Democrats will likely cede to Republican demands to renew all of the Bush tax cuts for several years -- a move that many in the party view as a major defeat."










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