Compromise to halt tax increases takes shape, jobless benefits may be extended

WASHINGTON (AP) — A critical compromise to head off a year-end tax increase for millions of Americans took shape in private talks between the White House and congressional Republicans Thursday, and an extension of unemployment benefits for many others appeared likely to become part of any deal.

The Obama administration sought to expand the package with other provisions that officials said would accelerate the nation's sluggish economic recovery. They included a tax break providing as much as $400 for individual working people and $800 for couples — even if they pay nothing to the IRS.

Two days after he and newly empowered Republicans exchanged pledges of cooperation at the White House, President Barack Obama expressed optimism about the prospects for agreement in time for enactment by year's end.

Still, he cautioned, “That doesn't mean there might not be some posturing over the next several days.”

Not long after he spoke, Democrats ignited a partisan row in the House with legislation that would prevent taxes from rising on lower- and middle-income wage earners but allow them to rise for people at higher incomes.

Tags: tax increase halt, jobless benefits, daily updates, news, washington