Here are the details of a tax compromise apparently worked (tentative) out between the Democrats and Republicans...
All the Bush tax cuts are extended for two more years (great, we have to go through all this again during the 2012 elections). In addition:
•Extends unemployment insurance for 13 months. Two million workers in December, and 7 million over the next year, would have lost benefits otherwise.
•Provides a one-year, 2 percentage point reduction in employees' Social Security payroll taxes, lowering the rate from 6.2% to 4.2%, at a cost of $120 billion.
•Keeps the Earned Income Tax Credit and American Opportunity Tax Credit increases from last year's economic stimulus law, for another $40 billion in tax cuts for families and students.
•Allows business to write off 100% of their capital purchases next year.
•Sets the estate tax at 35% for two years, with a $5 million exemption on assets that's higher than last year's $3.5 million. The rate came down under Bush's policy from 55% before 2001 to 45% in 2009 before expiring this year. It was set to return at 55% next year.
•Protects millions of taxpayers from seeing their taxes raised in 2010 and 2011 under the Alternative Minimum Tax.
Many were concerned that extending the Bush tax cuts for the highest 2% of earners would cost $700 billion over 10 years. But this compromise will cost $900 billion over two years.
Once again - Obama borrows from Social Security to fund his compromise. Another $ 120 billion stolen from social security. Nice!
Another year of unemployment for everyone...nice job! The illegals are happy - they will not have to fight Americans for those low paying jobs.
Obama caved....
By the way, it wasn't tax cuts...it was tax rate increases. The progressive tax system is extremely unfair.
The Social Security reduction may be the right thing for right now. Letting everyone keep a little extra take home pay should increase economic activity. And this is only for 2 years. We can change things in 2012.
Thomas Sowell: There are no solutions, just trade-offs.
Good advice from the President to fellow democrats that I believe is appropriate for both sides of the aisle
It's not just taxes: Obama defends his credibility
WASHINGTON (AP) - His political credibility on the line, President Barack Obama testily defended his willingness to choose compromise over combat with Republicans on Tuesday, lecturing fellow Democrats not to be "sanctimonious" purists.
and this is going to get our country back on its feet? i don't think so.
now i am looking at who will be dumped in 2012.
bumper sticker - honk if you will pay my mortgage
"The problem with Socialism is that eventually you run out of other people's money." attributed to Margaret Thatcher
"A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned - this is the sum of good government." Thomas Jefferson
