Tax deal 'recipe' could mix in help for all Americans

WASHINGTON — Members of Congress said Sunday they are on track for a deal that would include a temporary extension of the George W. Bush-era tax cuts for all Americans. An extension of unemployment insurance — a demand of President Obama and many Democrats— would also be part of a potential agreement, lawmakers from both parties said on various talk shows.

"Most folks believe that the recipe would include at least an extension of unemployment benefits ... and an extension of all of the tax rates for all Americans for some period of time," said Sen. Jon Kyl, R-Ariz., who is involved in negotiations with the White House.

Senate Majority Whip Dick Durbin, D-Ill., who appeared with Kyl on CBS' Face the Nation, said, "We're moving in that direction," though he opposes extending tax cuts for the wealthy because it would add $700 billion to the federal budget deficit over 10 years.

Obama, meanwhile, said this weekend that he would be "rolling up my sleeves" to work with both parties on an agreement. "It will require some compromise, but I'm confident that we can get it done," he said.

TAX CUTS: Obama says it will require 'some compromise'

Both sides are up against a tight deadline: The Bush tax cuts expire at the end of the year. Without an extension, Americans will be looking at a tax hike.

The president spoke after Senate Republicans blocked a Democratic plan Saturday that would have extended the tax cuts just to individuals who make up to $200,000 a year, and couples who make up to $250,000 annually. Republicans also rejected a measure that would have excluded only taxpayers who make more than $1 million a year.

Durbin said the votes showed that Republicans remain wedded to "the Bush economic policies" that "led us into this recession."

Kyl said no one should have their taxes raised in such a bad economy. He also noted that the unemployment rate rose to 9.8% in November, and "many of the jobs that are created are created by people who have money."

A variety of lawmakers said they did not want to negotiate in public, but did cite some details of a potential agreement during a string of interviews. Senate Minority Leader Mitch McConnell, R-Ky., said on NBC's Meet the Press, "We're discussing how long we should maintain current tax rates."

Republicans would like to extend all the Bush tax cuts permanently. But Sen. Orrin Hatch, R-Utah, told CNN'sState of the Union that "neither side has the votes to get what they want," and the GOP may have to settle for an extension of "about two years."

Obama also emphasized the need for unemployment benefits, saying "it is simply wrong" to consider tax cut extensions for the wealthy while denying relief to unemployed Americans during the holidays. About 2 million people stand to lose federal unemployment benefits by Dec. 31 if Congress does not fund them.