The President Announces a Tentative Bipartisan Agreement
President Obama announced
a tentative deal with
congressional Republicans for an economic package that would preserve Bush
administration tax breaks for families at all income levels for two years and extend
emergency jobless benefits through 2011.
The framework for a bipartisan agreement
year extension of the 2001 and 2003 Bush tax cuts in exchange for a 13-month extension
in unemployment benefits and other tax benefits.
tax relief for 2 years, set at a 35 percent with a $5 million exemption.
A write-off of 100 percent for new
equipment business investments in 2011.
regular tax extender provisions that expired in 2009 (Katrina WOTC, EZ/RCs, DC Tax
Incentives, Indian Hiring Tax Credit etc) are extended for 2010 and 2011.
American Opportunity credit will be extended for the Child Tax Credit and Earned Income
Tax Credit (EITC).
tax (AMT) patch retroactively for 2010 and extends it through 2011.
expiring in 2010 (WOTC unemployed veteran and WOTC disconnected youth) are being
reviewed and may be extended through the end of 2011.
React to Tentative Tax-Cut Agreement
House Democrats expressed frustration after the White House announced the agreement
with GOP lawmakers to extend the tax breaks to all Americans. Many Democrats contend
that Obama made too many concessions and agreed to the tax-cut deal with Republican
negotiators too quickly. Many Democrats expressed that changes are necessary if they
are expected to support it.
Defends Tentative Tax-Cut Agreement
President strongly defended the tentative tax-cut agreement stating that “this
country was founded on compromise” without compromise nothing would get done.
The president maintained that the clock was running out and without the agreement
the jobless would lose their benefits at the end of December and for middle-class
taxpayers who would see their paychecks shrink on January 1, 2011.
will continue to monitor the bipartisan agreement and will provide additional information
in the December Tax Intelligence.
This weblog is sponsored by TALX.
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