US President Barack Obama
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Obama reaches deal with Republicans over tax cuts

President Obama has announced a provisional agreement with his Republican opponents in Congress to extend Bush-era tax cuts, which were due to expire at the end of the year.

Mr Obama had strongly opposed extending the cuts to the wealthiest Americans.

But he was forced to compromise, after his Democratic Party suffered heavy losses in November's midterm elections.

The agreement must now be voted on by lawmakers.

Steve Kingston reports from Washington

  • 07 Dec 2010