President Obama and congressional Republicans have reached a tentative deal concerning an extension of unemployment benefits and the Bush-era tax cuts.
Mr. Obama and congressional Republicans agreed Monday to a tentative deal that would extend for two years the Bush-era tax cuts, continue unemployment benefits for an additional 13 months.
The deal will also cut payroll taxes for workers, part of an effort to encourage employers to start hiring.
The deal was announced late Monday afternoon after having been in the works for several weeks. The announcement follows political wrangling that saw proposals from both sides of the aisle fail.
The White House said the deal will likely result in an average saving of $3,000 for the average family. The deal will also revive the Estate Tax. Under the current proposal it would exempt inheritances of up to $5 million for individuals and $10 million for couples.
Mr. Obama said that he was disappointed with having to extend tax cuts to those making more than $250,000, but he said that millions of Americans will receive extended unemployment benefits in the coming months due to the deal.
The deal follows a weekend in which Senate Republicans expressed interest in reaching a deal, often noting that a deal was currently in the works.
The White House noted that it expects major opposition from congressional Democrats. Vice President Joe Biden is expected to travel to Capitol Hill tomorrow in an effort to pitch the bill to key figures.