President Obama reached a landmark compromise with Congressional Republicans last night to extend the Bush tax cuts to all Americans for another two years, in addition to extending unemployment benefits and a payroll tax cut.
In remarks at the White House, Obama said there were elements in the plan that even he didn't like, but he said compromise was necessary to ensure that taxes don't go up on middle class Americans on Jan. 1.
All parties in the negotiations supported continuing the lower Bush tax rates on incomes under $250,000 per year for couples, and $200,000 for individuals, so the average U.S. household, with an income of $49,777, will continue to keep its tax cut of $2,142.
But President Obama originally told voters that taxes on income of more than $250,000 should increase.
On the campaign trail in Reno, Nev. in February 2008, for example, Obama called for a rollback of the Bush tax cuts on the wealthiest Americans. This deal does not do that.
The family of an average Wall Street banker, with a wage of $311,330, will keep $9,318 as opposed to the $8,012 the president wanted them to keep.
Even as Republicans praised the compromise plan, some Democratic leaders were tough in their criticism for the president's agreement.
"I think a lot of people are wondering why President Obama doesn't fight for what he believes in a lot more," said Rep. Anthony Weiner, D-N.Y. "It seems like it goes from zero to fold in pretty fast time."
Our question to you today: What's your reaction to President Obama's shift on Bush tax cuts for the wealthiest Americans?