Vermont Democrat Calls Obama's Tax Cut Deal 'A Pig In A Poke'13:21
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U.S. Rep. Peter Welch, D-VT, at Vermont Democratic Party headquarters, in Burlington,Vt. (AP)
U.S. Rep. Peter Welch, D-VT, at Vermont Democratic Party headquarters, in Burlington,Vt. (AP)

Republicans wanted the Bush-era tax cuts extended for all Americans and they got it — for two years.   President Obama's deal with Republicans also reduces worker payroll taxes for one year, reinstates, temporarily, the estate tax at 35 percent, and extends jobless benefits for the long-term unemployed.

Republicans are happy, but Democratic Congressman Peter Welch of Vermont joins us to explain why many Democrats are not.

We also speak to Jonathan Weisman of the Wall Street Journal about the political implications and about how voters are responding.

Highlights of the Tax Cut Deal:

  • Extend Bush-era tax cuts for all Americans for two years
  • Reduce estate tax from 55 percent to 35 percent for two years and increase exemption on inherited money from $1 to $5 million
  • Cut Social Security payroll tax by 2 percent for one year
  • Extend recently expired long-term unemployment benefits for an additional 13 months

This segment aired on December 7, 2010.

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