Obama defends tax-cut deal with Republicans

U.S. President Barack Obama on Tuesday defended a deal he struck with Republicans that will see Bush-era income tax cuts extended for all Americans.

In a press conference at the White House, Obama said the deal will mean "middle class Americans won't see their taxes go up on Jan. 1."

Obama had campaigned on the promise to let tax cuts for the rich expire at the end of 2010. He had favoured limiting tax cuts to those with individual incomes up to $200,000 US and $250,000 for couples.

However, he said he could not get that move through Congress, leading to a Monday agreement with Republicans to ensure that middle-income tax cuts also got extended.

The deal also includes a renewal of jobless benefits through the end of 2011 and a one-year cut in Social Security taxes.

Obama vowed Tuesday that he will fight to end the high-income tax cuts when they come up for renewal again in two years.

"I’m as opposed to the high-end tax cuts today as I've been for years. In the long run, we simply can’t afford them, and when they expire in two years, I will fight to end them, just as I suspect the Republican Party may fight to end the middle class tax cuts that I've championed and they've opposed," Obama said.

"So we're going to keep on having this debate. We're going to keep on having this battle," he said.

"I’m not here to play games with the American people or the health of our economy. My job is to do whatever I can to get this economy moving," he added.

The deal with the Republicans has drawn the ire of Obama's fellow Democrats

"We will continue discussions with the president and our caucus in the days ahead," House of Representatives Speaker Nancy Pelosi said in a statement that contained no commitment to help pass the tax-cut plan.