Obama and GOP reach deal to extend all tax cuts?

According to Jon Ward at The Daily Caller, there's been a deal cut — and no one's taxes are going to go up:

President Obama and congressional Republicans have reached a tentative deal to extend the Bush tax cuts for all income levels and are presenting the proposal to congressional Democrats Monday afternoon, The Daily Caller has learned.

The deal will extend the current tax levels for two more years, preventing taxes from going up on any income levels, despite the wishes of many liberal Democrats — including Obama — that individuals making more than $200,000 a year and families with more than $250,000 a year in income see their rates go up.

In exchange, Republicans have agreed to extend unemployment insurance benefits for an additional 13 months.

They've also cut a deal keeping the tax cuts from the stimulus bill and worked out a compromise on the estate tax:

Other details include a temporary two percent reduction in payroll taxes to replace Obama’s “Making Work Pay” tax credit from the 2009 stimulus bill, and a compromise on the estate tax, which will be set for two years at 35 percent, with a $5 million exemption amount.

While extending unemployment benefits another year might seem ludicrous, obviously the new majority doesn't want to get saddled with the baggage that they are dumping people out on the streets right away. And they're doing it in exchange for a much sweeter deal on tax cuts.

In fact, after talking a big game, I'm shocked that this is the Democrats didn't get a bigger concession than this. New Democratic party slogan: We're not free, but we're cheap.

 

Beltway ConfidentialtaxesUnemployment benefitsUS

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