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.

Continue Reading Below

"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.