Obama, GOP reach deal to extend tax cuts (AP)

WASHINGTON – Brushing past Democratic opposition, President Barack Obama announced agreement with Republicans Monday night to extend expiring tax cuts for all Americans, renew jobless benefits and grant a one-year reduction in Social Security taxes for millions.

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 said there were elements of the deal he personally opposed, including an extension of expiring income tax cuts at upper income levels and a more generous deal on estates. But he said he decided that an agreement with Republicans was more important that a stalemate that would have resulted in higher income taxes at all income levels on Jan. 1.

“Make no mistake, allowing taxes to go up on all Americans would have raised taxes by $3,000 for a typical American family and that could cost our economy well over a million jobs,” he said at the White House.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) — President Barack Obama has announced a bipartisan agreement on year-end legislation to extend expiring tax cuts and renew jobless benefits as part of a sweeping attempt to strengthen the economic recovery.

Other elements include a cut in Social Security taxes for millions of Americans.

Obama did not mention it, but top congressional Democrats objected to the proposal earlier in the day on grounds it was too generous to the wealthy.

Article source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http://news.yahoo.com/s/ap/20101206/ap_on_bi_ge/us_tax_cuts

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