Obama Says He’ll Agree to Extend Tax Cuts to All for 2 Years

Obama Says He’ll Agree to Extend Tax Cuts to All for 2 Years
U.S. President Barack Obama. Photographer: Leslie E. Kossoff/Pool via Bloomberg

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.

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