This last Tuesday night, President Obama and the GOP reached a compromise on extending the Bush tax cuts for 2 more years. However, many Democratic congressmen emerged from the meeting angry and not so sure they could support it. They are wanting more sweeteners to make the deal less distasteful, but they have not been clear on what those might be. If the deal does not go through, most all Americans will start paying more in taxes come January 1st.
The Bush tax cut extensions would include many great benefits for both individual taxpayers and businesses alike. Some of the details include:
- An extension of unemployment benefits for millions of jobless workers
- Payroll tax reduction from 6.2% to 4.2%
- Enhanced tuition tax credits for college tuition
- Tax breaks for businesses that hire new workers
- Top estate tax rate staying at 35% instead of going up to 55% as scheduled
- Estate tax exemption staying at $5 million per person (this is one of the Democrats major points of contention since it only affects the “super wealthy” taxpayers)
Democratic staff members are estimating that at least half of their members are currently opposed to the deal. We will keep you posted as things progress and the final decisions are made. They better hurry up since they will be going on break for the holidays soon!
