Tax cut deal is reached

Obama agrees to a two-year extension of the Bush-era tax cuts for everyone, including the very wealthy, while Congressional Republicans agree to a 13-month extension of unemployment benefits. From the LAT:

According to White House officials, the elements of agreement include a payroll tax cut designed to put more money into workers' pockets in the hope that it will stimulate spending and the economic recovery. The cut would total $120 billion in 2011, about a 2 percentage point drop for a typical worker.

This obviously won't be going down well in many liberal circles.