Latest on the Tax Deal: Payroll Tax Cut, Estate Tax Back

NRO ^ | December 6, 2010 | Daniel Foster

[ejdrapes]

Latest on the Tax Deal: Payroll Tax Cut, Estate Tax Back

December 6, 2010 4:45 P.M.

By Daniel Foster    

What we’re hearing: A two-year extension of all current income, dividend, and capital gains tax rates, plus a one-year (or 13 month) extension of unemployment insurance.

Chuck Todd reports that the tax deal could include a payroll tax holiday. But Marc Ambinder reports that it will instead include a two percent two percentage point reduction in payroll tax that would replace President Obama’s favored Making Work Pay tax credit, and a reinstatement of the estate tax over a certain yet-to-be-decided threshold.

Multiple reports are indicating a deal is close to being struck.

UPDATE: We’re now hearing that the estate tax will be set at 35 percent for two years, with the first $5 million exempted. [Daily Caller's Jon Ward first to report.]

UPDATE II: Jake Tapper has more details on what’s in the proposed deal, including:

–allowing businesses to deduct 100% of certain investments in the first year (President Obama pitched this in September).

–extending the American Opportunity Tax Credit (college tuition), Child Tax Credit and Earned Income Tax Credit plus their refundability. 

One other wrinkle Tapper is reporting, potentially huge: the unemployment benefits extension will not be offset, at least not as part of this deal. This makes it likelier that Republicans in both houses will challenge it from the right, and that any voting majority will have to be cobbled together from both caucuses.

President Obama is supposed to address the deal at 6:10 PM.

[ejdrapes]

What part of WE WON doesn't the GOP get?!?!?!? Call your congressman and tell them HELL NO!

[dirtboy]

Maybe the part where, even next year, the Dems still control the Senate and the White House?

Until the GOP can gain control, there will have to be compromises with the Dems to get items such as the Bush tax cuts extended.

[Longbow1969]

Can people specifically explain why this is a bad deal?

My first question is, I do hope this unemployment extension doesn’t mean 99ers can collect even longer. I can maybe see keeping the extension past 26 weeks, but most certainly oppose anything that lets people collect for over 99 weeks.

Other than that, it looks like it is mostly a tax cut deal combining Bush’s tax cuts and Obama’s tax cuts right?

The payroll tax holiday appears to replace Obama’s “making work pay” tax cut which was in the Stimulus. Is there a reason this is not a good deal. Won’t everyone under 40k single/80k married still get $400 and $800 bucks?

[Siena Dreaming]

We’re now hearing that the estate tax will be set at 35 percent for two years, with the first $5 million exempted

What's it at now?

[EQAndyBuzz]

They haven’t won anything until January. Democrats still hold the majority in both houses.

I think Reagan said it is better to have half a loaf then no loaf at all. Please correct me if this wasn’t attributed to him.

[MetaThought]

55% I believe.

[Signalman]

Fortunately, my Congressman (Elton Gallegly) is a conservative Republican.

[onyx]

I pinged you to kristinn’s LIVE thread and posted your link and a snippet.

[Siena Dreaming]

Then 35% sounds good, especially if the first 5 million is exempted.

[Siena Dreaming]

Some of this sounds good.

I especially like the payroll tax holiday. This opens the door to a partial privitizaton of social security as it will be hard to re-instate this.

[MamaDearest]

What part of WE WON doesn't the GOP get?!?!?!?

If the GOP ignores the conservative will of the people now, they are putting one foot in their own grave and are aligning themselves with democrats and the very issues voters turned out in November to oppose. RINOs and pubbies signing on to this are traitors and blatantly selling out constituents and independents who trusted them.

[ejdrapes]

Sorry but we won this November. When the hell did Obama and the Dems compromise with the GOP? Everything in this deal is bad. The only worthwile deal would be an extension on ALL tax rates without any other strings attached.

And just as I type this Obama is on TV talking about this "deal" and framing the debate. Thanks a lot Boehner and McConnell!

[snippy_about_it]

What part of we don’t take the House until 2011 don’t you get? We won’t have the Senate and have to wait and pray until 2012 to get the White House. We are dealing with lame ducks right now.

[dirtboy]

So, then, tell us how the GOP can get the Bush tax cuts extended without the approval of the Senate and Obama’s signature.

[ejdrapes]

thanks, didn't see the live thread. Going there now...

[ejdrapes]

Sorry but I don't think we should be making stupid deals during a lame duck session. But obviously you're OK with Obama winning this round....

[raybbr]

Maybe the part where, even next year, the Dems still control the Senate and the White House? Until the GOP can gain control, there will have to be compromises with the Dems to get items such as the Bush tax cuts extended.

Yeah, it amazes how that escapes so many here on FR...

[dirtboy]

Sorry but we won this November

We won the House. The Dems still control the Senate and the White House. Do you have any suggestions how the GOP can get the Bush tax cuts extended without Senate approvla and without Obama's signature? The GOP will get the tax cuts extended for everyone, and not just those under $250K. To get that, they had to agree for Obama and the Dems to get part of their agenda as well. That's politics when you don't control both the legislative and executive branches.

[dirtboy]

But obviously you're OK with Obama winning this round....

The GOP got tax cuts for everyone, which Obama and most Dems opposed.

[screaminsunshine]

The past two weeks have been like Wrestling on tv. Fake posturing. What a scam.