By Carrie Budoff Brown
President Barack Obama announced an agreement with congressional Republicans Monday night to extend the Bush-era tax cuts to all Americans for two years — including wealthier families — but it still faced serious opposition from many in the Democratic Party.
The deal also includes a payroll tax cut for workers in 2011 — trimming the Social Security tax rate by 2 percentage points and saving $1,400 for a family earning $70,000. Republicans would agree to renew jobless benefits for an additional 13 months without paying for them, which the GOP views as a significant concession.
The deal amounts to a major reversal for Obama — who campaigned for president on a pledge not to allow the Bush tax cuts for the wealthy to continue beyond their scheduled expiration on Dec. 31. The two-year extension means the fight will be waged during the middle of his reelection campaign in 2012.
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The Wall Street Journal (7 Dec 10)