Tax Fight Continues

Thursday, December 9, 2010 - 3:55pm

Congress continues to wrestle over tax compromise.

House Democrats rejected President Obama's deal with Republicans on tax cuts on Thursday.

At stake are a host of other time sensitive issues, including extending unemployment benefits.

President Obama pleaded with his party to go along, calling passage of a compromise bill an "essential priority".

Unemployment benefits will be extended if the deal passes.

Middle class taxes won't rise, and, Mr. Obama says, there'll be millions of new jobs.

"But if this framework fails, the reverse is true. Americans would see it in smaller paychecks that would have the effect of fewer jobs," the president warned.

House Democrats are not buying his argument.

Republicans say they will block the unemployment extension and let middle class taxes rise,
but most Democrats say it's a bluff.

"I think the Republicans are blowing smoke if they say they were not going to extend unemployment benefits and go home for Christmas," says Oregon Democrat Peter DeFazio.

It's an angry, chaotic standoff.

"I think a lot of Democrats are in meltdown after the election. It would be self-destructive to defeat the President's plan," says political analyst Bob Shrum.

But it is possible.

The White House says if there's a deadlock, no one wins.

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