but as ktvu's scott mcfarland reports from our washington d.c. newsroom, the deal is on shaky grounds. good morning, scott. >> reporter: good morning to you. some congressional democrats don't like this deal and do have the power to kill it. we're seeing reports this morning that house democrats protested to call the deal surrender when it was laid out for them by speaker nancy pelosi over the past 36 hours. they want tax cuts extended for only those earning less than $250,000 each year. be on capitol hill today to rally support for this compromise, but his is a party divided over whether the president gave up too much during negotiations. >> we have to get an agreement. for the sake of the american people. get this resolved. no greater certainty taxes are not going to be increased. >> not basically limiting the tax cuts of those who really need it. that's the sad part. >> reporter: local house democrat interviewed before the white house christmas party last night indicated he might support this tax compromise calling it a "great trade across the

. >>> i'm scott mcfarland in washington. big deal to cut your taxes for two years and extend unemployment benefits nationwide. might that deal fall apart today? the story coming up in a live report. >>> good morning to you. welcome back. >>> president obama just cut a landmark deal last night with the republicans to give the american people a major tax cut for two more years. this deal also will extend unemployment benefits for 13 more months. now ktvu's scott mcfarland reports from washington d.c. that deal could possibly fall apart today. good morning, scott. >> reporter: too long, dave. his party doesn't like this deal. we're waiting to hear from nancy pelosi scheduled to have a capitol appearance about 2:00 p.m. pacific time to light the capitol christmas tree. other democrats have simply hammered this deal saying the president surrendered coming to this compromise. one house democrat called it a surrender another said the president punted away the football on third down. they wanted to allow the tax cuts to expire for m

but as scott mcfarland reports, washington is considering taking a new tax to each gallon too. ott. >> reporter: good morning. this letter set by federal leaders to other u.s. senators asks they consider a 25-cent a gallon gas tax easing it in over the next 25 months. they're asking to increase the gas tax by one penny per month for about two years. washington has been under intense pressure to reduce budget deficits. and they've talked about this idea before. but the outgoing chair of the house transportation committee has also suggested a gas tax increase and says it would be a huge generator of federal money which could be rolled back into federal programs. proposal not to stockpile cash but to use it to rebuild american roads and airports and rail systems to improve the transportation system and create jobs which in essence would help reduce the deficit through economic recovery. >> people have shown they would pay more in gas taxes if they knew that they had more transportation options that are public transportation, smoother roads, bridges. if they saw the benefit of that

live in washington scott mcfarland ktvu channel 2 news. >>> preparations are under way for inaugurationf governor elect jerry brown. it will respect the frugal and meantimes we are living in. it will be followed by a public party on the capitol lawn. >>> a new study by the san jose mercury news show double dipping. it's elected officials that retire and go to work -- the newly retired fire chief will return to work for the county next week as a contractor. in that job he's going to earn more than $100,000 a year on top of his $200,000 state pension. >>> it is 5:15. a new state law that takes effect tomorrow makes sure the children with preexisting conditions can get health insurance. the law says insurers cannot sell any policies in california for five years if they refuse to sell policies to children. the state law is tougher than similar federal rules that took effect back in september. another new law that takes effect tomorrow increases the price of moving violations in california. legislatures imposed a $4 surcharge on each traffic ticket. the surcharge is expected to raise $34 mil