GOP, Obama embrace Bush tax cuts compromise

By ANDREW TAYLOR Associated Press

WASHINGTON (AP) - A possible compromise on extending Bush-era tax cuts for rich and poor alike is in the works after the Republican triumph in the midterm elections.

White House press secretary Robert Gibbs says President Barack Obama is willing to consider a compromise for a one- or two-year extension of the tax cuts.

The compromise would apply even for families earning more than $250,000 a year. Obama formerly had opposed extending the cuts for these families.

The tax cuts were enacted in 2001 and 2003. They will expire Dec. 31. They include lower income tax rates, a $1,000 per-child tax credit, relief for married couples and lower taxes on investments and large estates.