Obama reaches deal with GOP to extend tax cuts

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(AP) - Brushing past Democratic opposition, PresidentBarack Obama announced agreement with Republicans Monday night toextend expiring tax cuts for all Americans, renew jobless benefitsand grant a one-year reduction in Social Security taxes formillions. The emerging agreement also includes tax breaks for businessesthat the president said would contribute to the economy's recoveryfrom the worst recession in eight decades. Obama said there were elements of the deal he personallyopposed, including an extension of expiring income tax cuts atupper income levels and a more generous deal on estates. But hesaid he decided that an agreement with Republicans was moreimportant that a stalemate that would have resulted in higherincome taxes at all income levels on Jan. 1. "Make no mistake, allowing taxes to go up on all Americanswould have raised taxes by $3,000 for a typical American family andthat could cost our economy well over a million jobs," he said atthe White House. Senate Majority Leader Harry Reid, D-Nev., reacted curtly to thepresident's announcement. "Now that the president has outlined his proposal, Senator Reidplans on discussing it with his caucus tomorrow," his spokesman,Jim Manley, said in a written statement. One top Republican, Rep. Dave Camp of Michigan, was morepositive. "This framework will allow us to extend all current taxrates and give economic recovery and job creation a chance," hesaid. Democrats have repeatedly raised objections to including theupper-income in any plan to extend tax cuts enacted in 2001 and2003 when George W. Bush was president. The Democratic-controlledHouse recently passed legislation to let the cuts lapse on incomesover $200,000 for individuals and $250,000 for couples. OnSaturday, Republicans blocked an attempt by Senate Democrats to dothe same. President Obama's full speech on tax cuts for Americans

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