Obama pushes for extension of tax cuts for middle-class

US president Barack Obama today urged Congress to immediately extend a tax cut for middle-class Americans earning up to $250,000, arguing that with the move, 98 per cent of families and 97 per cent of small businesses would help in faster economic growth.

"This is something we all agree on," the president said in his weekly radio and internet address. "Even as we negotiate a broader deficit reduction package, Congress should extend middle-class tax cuts right now.

"It's a step that would give millions of families and 97 per cent of small businesses the peace of mind that will lead to new jobs and faster growth."

Meanwhile, Obama and house speaker John Bohner have signalled they were open to some compromise on taxes and spending to prevent more financial pain in the new year, but the two sides had made little headway on tax increases for wealthy Americans, which the Republicans remain vehemently opposed to.

Obama said yesterday that he was not 'wedded to  every detail' of his approach to prevent a looming set of automatic tax hikes and budget cuts that threatened to eliminate millions of jobs and push the US back into an economic recession.

The president though insisted his re-election gave him a mandate to increase taxes on wealthier Americans.