Obama Republicans reach deal to extend tax cuts
Brushing past opposition in his own party  President Barack Obama announced agreement with Republicans Monday night on a plan to extend expiring income tax cuts for all Americans  renew jobless benefits for the long-term unemployed and grant a one-year reduction in payroll taxes.
 own party  President Barack Obama announced agreement with Republicans Monday night on a plan to extend expiring income tax cuts for all Americans  renew jobless benefits for the long-term unemployed and grant a one-year reduction in payroll taxes.
 The emerging agreement also includes tax breaks for businesses that the president said would contribute to the economy's recovery from the worst recession in eight decades.
 Obama's announcement marked a dramatic reversal of his long-held insistence  originally laid out in his 2008 campaign  that tax cuts should only be extended at incomes up to $200 000 for individuals and $250 000 for couples. He explained his about-face by saying that he still opposed the move and noted the agreement called for a temporary  two-year extension of cuts at all income levels  not the permanent renewal that Republicans have long sought.
 Obama also wanted to wrap up a deal on the tax cuts quickly to leave time for the Senate to debate and vote on a new nuclear arms control treaty with Russia  which the president has made a top year-end priority.
 Both parties have been under pressure from their bases not to compromise on the tax cut issue. Republicans insist that it makes no sense to raise taxes on anyone in a weak economy. Democrats argue that extending tax cuts for the richest Americans would contribute to rising deficits and force deeper cuts in social welfare programs. Obama found himself under fire from liberal Democrats who accused him of being too quick to cave in to Republican demands.
 Obama said the continued political stalemate over taxes amounted to a "chilling prospect for the American people whose taxes are currently scheduled to go up on Jan. 1."
 Obama said there were elements of the deal he personally opposed  including an extension of expiring income tax cuts at upper income levels and the more generous deal on estate taxes. But he said he decided that an agreement with Republicans was more important than a stalemate that would have resulted in higher income taxes at all levels on Jan. 1.
 Even though the newly elected lawmakers don't take their seats until January  Obama has already treated Republican leaders with far more deference than he has so far in his term. Similarly  McConnell and Rep. John Boehner of Ohio  in line to become House speaker  have seemed willing to strive for compromise with the White House  rather than merely oppose virtually all of the president's initiatives.
Brushing past opposition in his own party  [TGT] announced agreement with Republicans Monday night on a plan to extend expiring income tax cuts for all Americans  renew jobless benefits for the long-term unemployed and grant a one-year reduction in payroll taxes.
 own party  [TGT] announced agreement with Republicans Monday night on a plan to extend expiring income tax cuts for all Americans  renew jobless benefits for the long-term unemployed and grant a one-year reduction in payroll taxes.
 The emerging agreement also includes tax breaks for businesses that [TGT] said would contribute to the economy's recovery from the worst recession in eight decades.
 [TGT]'s announcement marked a dramatic reversal of [TGT] long-held insistence  originally laid out in [TGT] 2008 campaign  that tax cuts should only be extended at incomes up to $200 000 for individuals and $250 000 for couples. [TGT] explained [TGT] about-face by saying that [TGT] still opposed the move and noted the agreement called for a temporary  two-year extension of cuts at all income levels  not the permanent renewal that Republicans have long sought.
 [TGT] also wanted to wrap up a deal on the tax cuts quickly to leave time for the Senate to debate and vote on a new nuclear arms control treaty with Russia  which [TGT] has made a top year-end priority.
 Both parties have been under pressure from their bases not to compromise on the tax cut issue. Republicans insist that it makes no sense to raise taxes on anyone in a weak economy. Democrats argue that extending tax cuts for the richest Americans would contribute to rising deficits and force deeper cuts in social welfare programs. [TGT] found [TGT] under fire from liberal Democrats who accused [TGT] of being too quick to cave in to Republican demands.
 [TGT] said the continued political stalemate over taxes amounted to a "chilling prospect for the American people whose taxes are currently scheduled to go up on Jan. 1."
 [TGT] said there were elements of the deal [TGT] personally opposed  including an extension of expiring income tax cuts at upper income levels and the more generous deal on estate taxes. But [TGT] said [TGT] decided that an agreement with Republicans was more important than a stalemate that would have resulted in higher income taxes at all levels on Jan. 1.
 Even though the newly elected lawmakers don't take their seats until January  [TGT] has already treated Republican leaders with far more deference than [TGT] has so far in [TGT] term. Similarly  McConnell and Rep. John Boehner of Ohio  in line to become House speaker  have seemed willing to strive for compromise with the White House  rather than merely oppose virtually all of the president's initiatives.