Aaj English TV

Friday, November 15, 2024  
12 Jumada Al-Awwal 1446  

After the tax fight, parties move to compromise

Their political options limited, Democrats and Republicans appeared to unite Sunday behind the outlines of an economic package that would temporarily extend expiring tax rates as well as jobless benefits for millions of Americans.

Differences remained over details, and some Democrats continued to object to any plan that would continue Bush-era tax rates at the highest income levels.

Without action, however, Congress faced the prospect of letting the tax rates revert to higher pre-2001 and 2003 levels, and delivering a tax hike to all taxpayers. Negotiations between the Obama administration and a bipartisan group of lawmakers centered on a two-year extension of current rates.

At the same time, Friday's jump in the unemployment rate to 9.8 percent added pressure on Republicans to accede to President Barack Obama's demand that Congress extend unemployment insurance for a year.