President Obama appears to be open to working with Republicans to extend Bush-era tax cuts. Keeping today's lower tax rates for the wealthy, temporarily, appears to be on the table.
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President Obama appears to be open to working with Republicans to extend Bush-era tax cuts. That’s what he indicated Friday at a press conference in Asia, where he’s traveling. Mr. Obama reiterated that he plans to meet with congressional leaders at the White House next week and that item No. 1 on the agenda is the looming expiration of the lower Bush tax rates.
“There may be a whole host of ways to compromise around those issues,” said the US president.
But what is Obama’s bottom line? How far toward the GOP’s position will he go?
IN PICTURES: Obama's Asia trip
Here’s the state of play at the moment: Before the election, Obama and many other Democrats campaigned on extending rate reductions only for the middle class, defined as those making less than $250,000 a year. That includes some 98 percent of taxpayers, according to Obama.
Republicans want the lower rates extended for everyone, including those making more than $250,000 a year. The wealthy include many small-business owners, who create most of America’s new jobs, according to the GOP.