The original content of Democracy Now! Headlines appears under the Creative Commons BY-NC-ND 3.0 License (United States). For more, including their other shows and media, visit www.democracynow.org. December 7, 2010 Obama-GOP Deal Preserves Cuts to Income, Estate Taxes for Wealthiest -------------------------------------------------------------------- The Obama administration and congressional Republicans have reached an agreement that would the extend the Bush-era tax cut for the wealthiest Americans. President Obama had campaigned on a pledge to extend the tax cuts only for Americans making less than $200,000, and the House passed a measure along those lines last week. But Senate Republicans had vowed to block all other congressional action unless the tax cut was also extended for multi-millionaires and billionaires after its expiration at the end of the month. In return, President Obama won a 13-month extension of jobless benefits for the unemployed and a reduction in payroll taxes to help spur hiring. Unveiling the deal at the White House, Obama said he was forced to reach a compromise. President Obama: "So, as sympathetic as I am to those who prefer a fight over compromise, as much as the political wisdom may dictate fighting over solving problems, it would be the wrong thing to do. The American people didn’t send us here to wage symbolic battles or win symbolic victories. They would much rather have the comfort of knowing that when they open their first paycheck on January of 2011, it won’t be smaller than it was before, all because Washington decided they preferred to have a fight and failed to act." In addition to extending the tax cut for the wealthy, President Obama also acceded to Republican demands for major exemptions to the estate tax. Individuals inheriting up to $5 million and couples inhering up to $10 million would be exempt from taxes, and taxes would only be applied to 35 percent of an estate’s worth. The cuts to the estate tax would be even greater than in President Bush’s last year in office. .