Obama Faces Democratic Opposition After Striking Tax Cut Deal

Obama caved to the Republicans and his fellow Dems are pretty ticked off. Also, he continues to play the class warfare games with his billionaires and millionaires labels. Isn’t that getting tedious?



Fox News reports that President Obama and White House officials underscored the need to compromise Monday in unveiling a congressional deal to avoid the expiration of the Bush-era tax cuts at the end of the year, but some of the toughest critics of Obama's version of compromise come from within his own party.



Democrats have generally argued that the tax cuts should be extended for the middle class -- but not for the wealthiest 2 percent. Republicans have argued that the cuts should be extended for all taxpayers.



The "framework" of the deal that Obama outlined Monday evening calls for a two-year extension of the cuts in all income tax brackets. It also would extend long-term unemployment benefits through next year.



The estate tax rate would be renewed, but at a lower rate than even during the Bush administration. And the Obama administration is proposing a one-year payroll tax reduction that sources say would cut the amount contributed to Social Security from 6.2 percent to 4.2 percent.



"I have no doubt that everyone will find something in this compromise that they don't like," Obama said, but "we cannot play politics at a time when the American people are looking for us to solve problems." He said letting taxes increase for all Americans would create a chilling effect on the economy.



With Republicans set to take control of the House in January, Obama's remarks received a warm reception from the incoming speaker, House Republican Leader John Boehner.



"It’s encouraging that the White House is now willing to stop all of the job-killing tax hikes scheduled for January 1," Boehner spokesman Mike Steel said. "We look forward to discussing this proposal with House Republican members and the American people."



The top Democrat in the Senate, however, said much by not saying much at all. Majority Leader Harry Reid's office released a written statement on the tax deal saying only that Reid "plans on discussing it with his caucus tomorrow







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