Obama Hints at Extension of Tax Cuts

President Barack Obama made some encouraging comments about an extension of the Bush-era tax cuts.

In a speech today at Forsyth Technical Community College in Winston-Salem, N.C., the president said that a deal between Democrats and Republicans to extend the tax cuts is needed "even if it's not 100% of what I want."

Obama also said that any deal should include an extension of unemployment benefits. Long-term unemployment benefits, which had already been extended by Congress for up to 99 weeks from 26 weeks, began to expire for about 2 million Americans last week.

Democrats wanted an extension of tax cuts only for the "middle class" -- couples making up to $250,000 a year and individuals making up to $200,000 a year, but the Senate on Saturday rejected that measure. Democrats also want to make tax cuts for that middle class permanent, while Republicans want to make tax cuts permanent for everyone. The GOP had resisted an extension of unemployment benefits without a plan by Congress to pay for it.

A compromise is expected to come in the next few days, however, and a deal will likely keep current tax rates the same for all income levels, as well as include an extension of unemployment benefits.

Without a deal, nearly every American taxpayer will see higher tax rates beginning on Jan. 1.

"The recovery is simply not happening fast enough," President Barack Obama said.