President Obama tells Democrats to pass tax cut or we will all pay more

President Obama tells Democrats to pass tax cut or we will all pay more. President Obama Saturday called on Democratic lawmakers to pass a Republican-backed tax-cut deal, telling them it would keep America's recovery on track.

In his weekly radio address, the President said without the proposal's approval, more than 1 million jobs could be lost nationwide and families would face tax hikes in the new year.

"If Congress doesn't act, tax rates will automatically go up for just about everyone in our country," he said yesterday. "That's unacceptable to me."

The deal extends the Bush-era cuts to income-tax rates for two years and extends unemployment aid for 13 months. But Democrats have objected to tax-break extensions for the wealthy, including a generous estate-tax provision.

Obama negotiated the proposal with Republicans, but called the deal "by no means perfect." He opposed the tax-cut extension for the wealthy, but ceded the concession in order to get the GOP on board.

Overall, he said, "This is a good deal for the American people. The vast majority of the tax cuts in this plan will help the middle class."

Other measures in the deal include a cut of 2 percentage points to Social Security payroll taxes for 2011 and tax breaks for small businesses.

The estate-tax provision caps the rate at 35% after a $5 million tax-free allowance per individual.


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