Following a weekend of negotiation with Congressional Republicans, President Barack Obama outlined the framework of a compromise that would extend the tax rate reductions signed into law by President Bush in 2001 and 2003 for two years, along with a temporary reduction in the payroll tax by 2%, business investment credits, and a 2-year cut in the estate tax. In return, the President would get a 13-month extension of unemployment benefits.

“I certainly applaud the provisions of this compromise that avoid raising taxes during a period of high unemployment and still-sluggish economic growth and promote job-creating investment by businesses; however, extending unemployment payments does nothing to create jobs and provides the wrong incentives,” said Dave Smith, Policy Director for the Texas Young Republicans Federation.

TYRF Chairman Kristy Moore said “I called my Congressman, Ralph Hall (R-TX), today to express my disapproval with the deal. Extending the unemployment benefits yet again is simply bad economic policy — another example of budget-busting Big Government that voters said ‘no’ to in November.”

“This is a great opportunity for Young Republicans to flex their political muscles with some grassroots action,” said Brian Dawson, TYRF Political Director. “We urge everyone to make sure their Congressman and Senators know that the message of November was less government spending, not more.”