201012.07
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Tax Agreement Reached

President Obama announced yesterday a compromise “framework” to resolve the year-end standoff over the extension of Bush era tax cuts, unemployment benefits and other issues. House and Senate members will meet today to discuss the plan and a timetable for action.

The compromise is reported to include the following:

* Reinstate and extend the estate tax at a 35 percent rate and an exemption level of $5 million for two years

* Cut Social Security payroll taxes from 6.2 to 4.2 percent for one year

* Extend the 2001 and 2003 Bush tax cuts for all income levels for two years

* Extend emergency unemployment benefits for 13 months

* Allow businesses to write off the full cost of capital investments for one year

* Extend through 2011 the alternative minimum tax (AMT) patch (to prevent millions from having to pay the AMT)

* Extend some of the Obama economic stimulus law proposals

To see the President’s remarks go to :

http://www.whitehouse.gov/the-press-office/2010/12/06/statement-president-tax-cuts-and-unemployment-benefits