President Barrack Obama announced on national television the results of his heated debates with the congressional Republicans on Monday to finally reach a deal to extend all the tax cuts for the lower and middle class Americans and also the wealthy class as well. Obama initially wanted to eliminate the tax cuts for the wealthiest 2% of U.S. households, but the Republicans fought hard to keep them. After a period of battle in stalemate, Obama and GOP settled to an agreement. As a result, the tax cuts are extended for the lower, middle, and upper class Americans for two years.
Highlights of the proposed bipartisan agreement (from article below):
- Rates: Extends all income tax rates for two more years for all taxpayers.
- Estates: Applies a 35 percent tax on estates worth more than $5 million.
- Unemployment: Extends unemployment insurance for 13 months, providing benefits to 2 million long-term unemployed workers in December and 7 million over the next year.
- Payroll: Cuts payroll taxes by 2 percentage points for 2011.
- Credits: Extends increases in the Earned Income Tax Credit, the child credit and tuition credits adopted in 2009.
- Businesses: Allows businesses to write off 100 percent of their capital investments during 2011. The current write-off is 50 percent.
Read the entire article here.
What is your opinion on the newly proposed tax cuts?