Obama, Dems strategize on tax cuts

WASHINGTON, Dec. 5 (UPI) -- U.S. President Obama and congressional Democrats met this weekend to strategize on how to solve the tax cut impasse with Republicans, Roll Call reported Sunday.

In a Saturday afternoon get-together at the White House with Senate Majority Leader Harry Reid of Nevada and House Speaker Nancy Pelosi of California, the president laid out a proposal to extend the expiring 2001 and 2003 tax cuts, sources told Roll Call. One would temporarily extends the cuts for those in the highest tax bracket in exchange for including continuing unemployment insurance and other tax extenders, including the Making Work Pay tax credit, the Washington publication said.

That night at his residence, Vice President Joe Biden spent nearly 2 hours with Pelosi, House Majority Leader Steny Hoyer of Maryland, Assistant to the Speaker Chris Van Hollen, also of Maryland, and White House interim Chief of Staff Pete Rouse going over the legislative strategy.

GOP lawmakers have made it clear they won't accept tax increases on the nation's wealthiest people -- not even those in the $1 million-a-year category -- and Obama is now indicating he is willing to compromise from his initial push to allow George W. Bush-era tax cuts expire for taxpayers making $200,000 or more and families earning $250,000 or more.

The tax cuts are to expire at the end of the month.