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 :