Published December 07, 2010
FoxNews.com
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AP
Dec. 6: President Obama speaks after meeting with Democratic congressional leaders on a deal to extend tax cuts.
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President Obama and White House officials underscored the need to compromise Monday in unveiling a congressional deal to avoid the expiration of the Bush-era tax cuts at the end of the year, but some of the toughest critics of Obama's version of compromise come from within his own party.
Democrats have generally argued that the tax cuts should be extended for the middle class -- but not for the wealthiest 2 percent. Republicans have argued that the cuts should be extended for all taxpayers.
The "framework" of the deal that Obama outlined Monday evening calls for a two-year extension of the cuts in all income tax brackets. It also would extend long-term unemployment benefits through next year. The estate tax rate would be renewed, but at a lower rate than even during the Bush administration. And the Obama administration is proposing a one-year payroll tax reduction that sources say would cut the amount contributed to Social Security from 6.2 percent to 4.2 percent.
"I have no doubt that everyone will find something in this compromise that they don't like," Obama said, but "we cannot play politics at a time when the American people are looking for us to solve problems." He said letting taxes increase for all Americans would create a chilling effect on the economy.
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