Now They’re Talking…..Literally
Posted By thestatedtruth.com on December 6, 2010
Can’t say it’s a done deal, but it sounds pretty darn close!
President Barack Obama said he’ll agree to a two-year extension of all Bush-era tax cuts in exchange for extending federal unemployment insurance. The plan also would cut the payroll tax by 2 percentage points.
Obama said he would accept a lower rate for the estate tax than Democrats wanted in order to break a stalemate over extending the Bush tax cuts before Congress adjourns. The current tax rates, enacted in 2001 and 2003, are set to expire Dec. 31.
Without the compromise, middle-income families would become “collateral damage for political warfare here in Washington,†Obama said in televised remarks. He said he still believes the nation can’t afford to permanently extend the top tax rates.
“This compromise is an essential step on the road to recovery,†Obama said. He criticized Republicans for insisting on permanent tax cuts for the wealthiest Americans “regardless of the cost of impact on the deficit.â€
Obama spoke in Washington after a White House meeting with Democratic congressional leaders. They and the Republican leadership still have to sell the plan to their caucuses. Obama called it a “framework†for a deal.
The compromise plan would set the estate tax at a top rate of 35 percent, which applies after a $5 million tax-free allowance per individual, according to two people familiar with the discussions. That rate would be the lowest since 1931, not counting 2010, when the rate was zero and replaced with a complicated capital gains tax that applies when inherited assets are sold.
Obama also endorsed allowing a full deduction for equipment purchases that currently must be deducted over time. The proposal would accelerate $200 billion in tax savings for companies in the first year and benefit 1.5 million companies and several million individuals who run businesses, according to White House estimates.
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