TODAY   |  December 06, 2010

Senate compromise on taxes near

NBC’s Savannah Guthrie reports that Republicans and Democrats are getting closer to reaching a deal on Bush-era tax cuts; meanwhile, President Obama says he will oppose even a temporary extension of cuts for wealthy people.

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>>> now to washington and the battle over the bush era tax cuts , a compromise appears to be on the horizon. nbc's white house correspondent savannah guthrie has more on this.

>> reporter: a deal could come as early as this morning. but some democrats are not happy about the compromise.

>> tax cuts should go to the middle class , we should not increase taxes on anybody.

>> reporter: after weeks of partisan wrangling over how to extend the expiring bush era tax cuts .

>> i'm optimistic, we'll be able to come together.

>> reporter: senator mitch mcconnell appearing on "meet the press," suggests a compromise is near.

>> taxes are not going up on anybody during this recession.

>> reporter: the deal is set by two democrats over the past weekend.

>> the motion is not agreed to.

>> reporter: the vote failed without the support of republicans. back from his trip to afghanistan, president obama weighed in after the senate vote saying now is the time for a deal.

>> we need to redouble our efforts to resolve this impasse in the next few days to give the american people the peace of mind that their taxes will not go up on january 1. it will require some compromise. but i'm confident that we can get it done.

>> reporter: behind the scenes senior administration officials tell nbc news that the president has drawn a new line in the sand saying he will propose even a temporary extension of the tax cuts unless unemployment benefits and other tax cuts are also extended. the president's biggest challenge remains jobs, following an unemployment report that caught the west wing and wall street by surprise, as the jobless rate jumping to 9.8%.

>> despite 11 contest months of private sector job growth , despite creating more than 1 million private sector jobs this year, it's not enough. we have to do more to accelerate the economic recovery and create jobs for the millions of americans who are still looking for work.

>> reporter: the president is on the road today in north carolina at a community college , once again expected to call for the extension of unemployment benefits and other middle class tax cuts to be part of any compromise this week.