Fresh off big victories on Election Day, Republicans in Congress feel empowered in their fight to extend tax cuts that expire in January, including those for the wealthy. President Barack Obama has said he wants to compromise with Republicans to ensure that tax cuts for middle-income families continue, suggesting he's open to extending all the tax breaks enacted under the Bush administration for a year or two.
Republican leaders say it's a nice gesture by the president, but some key lawmakers want more. ``It should be permanent,' said Senator Judd Gregg of New Hampshire. ``We've got to get this economy to pick up and if you raise taxes you're going to stifle the economy significantly. I'm sure that somebody's explained that to the president.'
Rep. John Boehner of Ohio, who's in line to be the next House speaker in January, also played down talk of a compromise. ``I think that extending all of the current tax rates and making them permanent will reduce the uncertainty in America and help small businesses to create jobs again,' Boehner said. ``You can't invest when you don't know what the rules are.'