News / USA

Obama: Compromise with Republicans on Taxes 'Essential Step'

President Barack Obama makes a statement on a year-end bipartisan agreement to extend expiring tax cuts, 06 Dec 2010
President Barack Obama makes a statement on a year-end bipartisan agreement to extend expiring tax cuts, 06 Dec 2010

President Barack Obama on Monday announced a bipartisan agreement with opposition Republicans on extending current tax rates for all Americans, while continuing government compensation for unemployed Americans and providing tax credits to help businesses and strengthen the economy.   

The compromise comes after a week of intense negotiations between the White House and Republicans on Capitol Hill on the issue of tax rates approved by Congress in 2001 and 2003 under former President George W. Bush.

Republicans had threatened to bring end-of-year work in the U.S. Senate to a halt, unless they received an assurance that lower income tax rates would be extended for the wealthiest two percent of Americans as well as the middle class.

For months, President Obama insisted that permanently extending tax cuts for the wealthy would be unfair to middle class Americans and add $700 billion to the government deficit.

What the president calls a framework agreement involves a two-year temporary extension of all Bush-era tax cuts, continuing unemployment benefits for 13 months, and reducing payroll taxes for workers to encourage businesses to hire new employees.

Citing what he called real and profound differences between Democrats and Republicans, Mr. Obama said he decided to move to break a stalemate that could have continued into the new year.

"I know there are some people in my own party, and in the other party, who would rather prolong this battle, even if we can't reach a compromise," said President Obama. "But I am not willing to let working families across this country become collateral damage for political warfare here in Washington.  I am not willing to let our economy slip backwards, just as we are pulling ourselves out of this devastating recession."

The president spoke after intense negotiations, headed on the White House side by Vice President Joe Biden and Treasury Secretary Timothy Geithner.  Mr. Obama also met late Monday with House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid and other fellow Democrats who, reports, say urged him not to endorse a compromise.

On Capitol Hill, Democrats and Republicans stressed that the deal was not yet final.  Lawmakers will be holding additional conversations with the White House, and the compromise would be subject to votes in the House of Representatives and the Senate.

The president said he is confident that in two years, as Americans make tough choices about bringing down the $1.3-trillion federal government budget deficit, it will become apparent that tax cuts cannot be extended again.  But for now, he said, the compromise is critical to support the nation's economic recovery.

"It offers us an opportunity that we need to seize," said Obama. "It's not perfect, but this compromise is an essential step on the road to recovery."

The president says he wants a final agreement and congressional approval before lawmakers leave Washington for the Christmas break.  Mr. Obama vowed that his focus next year will be on continuing the economic recovery and creating more jobs.

You May Like

Israelis Quietly Expand Enclave in Palestinian District of Jerusalem

Estimated 500 settlers, armed or protected by paramilitary police, live in Silwan among 50,000 Palestinians More

Video US, Iran Face Similar Challenges in Syrian Fight Against IS

Both Washington, Tehran back fighters battling Islamic State militants in Iraq -- but in Syria they support opposing sides in country’s civil war More

China Boosts Efforts to Help Afghan, Regional Stability

Observers say China’s increased regional involvement are due to concerns that Afghan instability and the presence of anti-China militants in Pakistani border areas could fuel Xinjiang troubles More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
China Political Meeting Seeks to Improve Rule of Lawi
X
William Ide
October 20, 2014 10:23 AM
China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Nigeria Agrees to Cease-Fire With Boko Haram

Islamist militant group Boko Haram and the Nigerian government have agreed to a cease-fire. The Nigerian government issued an order Friday, telling all military chiefs "to comply with the cease-fire agreement in all theaters of operations. Why now and the significance of the agreement are questions on some people’s minds. VOA's Mariama Diallo reports.
Video

Video Kobani Fighting Sends 400,000 Refugees to Turkey

The offensive by Islamic State militants against the northern Syrian city of Kobani has caused hundreds of thousands of residents to flee to Turkey. They receive help from Turkish authorities and individuals, but say much more is needed. VOA’s Scott Bobb reports from the town of Suruc a few kilometers from the border.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.
Video

Video Syrian Defector Leaks Shocking Photos of Torture Victims

Shocking photographs purporting to show Syrian torture victims are on display at the U.S. Holocaust Memorial Museum in Washington. The museum says the graphic images are among thousands of photographs recently smuggled out of Syria by a military policeman-turned-defector. As VOA reporter Julie Taboh reports, the museum says the photos provide further evidence of atrocities committed by the government of Syrian President Bashar al-Assad against its own people.
Video

Video Drought-Stricken California Considers Upgrading Water System

A three-year drought in California is causing a water shortage that is being felt on farms and cities throughout the state. As VOA's Mike O’Sullivan reports, water experts, consumers and farmers say California needs to make changes to cope with an uncertain future.
Video

Video TechShop Puts High-tech Dreams Within Reach

Square, a business app and card reader, makes it possible to do credit card transactions through cell phones. But what made Square possible? VOA’s Adrianna Zhang and Enming Liu have the answer.

All About America

AppleAndroid