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Thursday AM December 9th, 2010

President Barack Obama says economists predict higher job growth in 2011 and 2012 if Congress passes tax deal he negotiated with Republicans. The agreement would extend expiring Bush-era tax rates to all taxpayers for two years, and extend jobless benefits and cut payroll taxes. Republican Senator John Cornyn of Texas weighs in on the debate, as Ed Mayberry reports.


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Senator John Cornyn Republicans believe that Democrats angry about the deal on tax cuts will support it when they weigh the consequences of people’s taxes going up. U.S. Senator John Cornyn of Texas concedes the legislation is a mixed bag.

“It does also call from some $900 billion in additional unpaid-for deficit spending in order to extend unemployment benefits. But I do believe that there will be amendments offered on the floor which I intend to support to pay for those unpaid-for items contained in the package.”

Senator Cornyn says there are two things left for Congress to consider before the Christmas break.

“We do need to prevent this huge tax increase, and we do need to continue the operation of government. My preference would be to pass a continuing resolution and then come back in January where I hope we will seriously take up the President’s Fiscal Commission report and deal with our fiscal situation, which is rapidly approaching a crisis.”

If the tax legislation fails, taxes on the typical family will soar by $3,000 and the long-term unemployed will go without government benefits.

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