Obama Agrees to Extend Bush Tax Cuts for 2 Years

President Barack Obama said he’ll agree to a two-year extension of all Bush-era tax cuts in exchange for extending federal unemployment insurance. The plan also would cut the payroll tax by 2 percentage points.

Obama said he would accept a lower rate for the estate tax than Democrats wanted in order to break the stalemate.

Without the compromise, middle-income families would become “collateral damage for political warfare here in Washington,” Obama said. He said he still believes the nation can’t afford to permanently extend the top tax rates.

To contact the reporter on this story: Mike Dorning in Washington at mdorning@bloomberg.net

To contact the editor responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net

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