White House: Tax Deal Won't Worsen Long-Term Deficit

The White House defended a proposed tax deal on Tuesday championed by President Barack Obama, saying an extension of all Bush-era tax cuts over two years would not worsen the medium- and long-term U.S. deficit.

"These are responsible, temporary measures to support our economy that will not add costs by the middle of the decade," the White House said in a statement after some Democrats accused Obama of caving in to Republican demands on taxes.