Dec. 9, 2010 /EIN Presswire/ – After the Obama Administration announced a deal with Republicans to keep many Bush-era tax credits for the upper and upper-middle class this week, fellow Democrats and investors reacted negatively to the President’s plan.
Congressional Democrats remained unclear on their support for the plan with the lame-duck session drawing to a close, as they had wanted tax cuts only for the middle class.
Obama defended his renewal of the tax cuts as a mechanism to help end what he called the greatest American recession in 70 years. The plan would cost the federal government an estimated $500 billion in tax revenue.
Investors sold U.S. Treasury bonds in record amounts this week, in fear of the tax cuts further adding to the deficit and increasing federal spending. Stocks in the U.S. and Europe had originally risen with the first news of the Obama tax deal.
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