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Latest on the Tax Deal: Payroll Tax Cut, Estate Tax Back
NRO ^ | December 6, 2010 | Daniel Foster

Posted on 12/06/2010 3:36:56 PM PST by ejdrapes

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

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.



TOPICS: Breaking News; News/Current Events
KEYWORDS: deal; gopsurrender; obama; palin; tax; taxes; taxhike
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What part of WE WON doesn't the GOP get?!?!?!? Call your congressman and tell them HELL NO!
1 posted on 12/06/2010 3:36:58 PM PST by ejdrapes
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To: ejdrapes
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.

2 posted on 12/06/2010 3:41:55 PM PST by dirtboy
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To: ejdrapes

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?


3 posted on 12/06/2010 3:41:58 PM PST by Longbow1969
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To: ejdrapes
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?

4 posted on 12/06/2010 3:42:20 PM PST by Siena Dreaming
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To: ejdrapes

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.


5 posted on 12/06/2010 3:43:12 PM PST by EQAndyBuzz (Remember March 23, 1775. Remember March 23, 2010)
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To: Siena Dreaming

55% I believe.


6 posted on 12/06/2010 3:44:18 PM PST by MetaThought
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To: ejdrapes

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


7 posted on 12/06/2010 3:44:59 PM PST by Signalman
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To: ejdrapes; kristinn

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


8 posted on 12/06/2010 3:46:07 PM PST by onyx (If you truly support Sarah Palin and want on her busy ping list, let me know!)
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To: MetaThought
Then 35% sounds good, especially if the first 5 million is exempted.
9 posted on 12/06/2010 3:46:22 PM PST by Siena Dreaming
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To: ejdrapes
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.

10 posted on 12/06/2010 3:46:55 PM PST by Siena Dreaming
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To: ejdrapes
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.

11 posted on 12/06/2010 3:47:06 PM PST by MamaDearest
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To: dirtboy
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!

12 posted on 12/06/2010 3:48:21 PM PST by ejdrapes (Obamacare is both too complicated to succeed and to broken to repair)
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To: ejdrapes

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.


13 posted on 12/06/2010 3:48:52 PM PST by snippy_about_it (Looking for our Sam Adams)
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To: MamaDearest

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


14 posted on 12/06/2010 3:48:56 PM PST by dirtboy
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To: onyx
thanks, didn't see the live thread. Going there now...
15 posted on 12/06/2010 3:49:19 PM PST by ejdrapes (Obamacare is both too complicated to succeed and to broken to repair)
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To: snippy_about_it
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....
16 posted on 12/06/2010 3:50:44 PM PST by ejdrapes (Obamacare is both too complicated to succeed and to broken to repair)
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To: 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.

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

17 posted on 12/06/2010 3:51:46 PM PST by raybbr (Someone who invades another country is NOT an immigrant - illegal or otherwise.)
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To: ejdrapes
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.

18 posted on 12/06/2010 3:52:26 PM PST by dirtboy
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To: ejdrapes
But obviously you're OK with Obama winning this round....

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

19 posted on 12/06/2010 3:53:43 PM PST by dirtboy
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To: ejdrapes

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


20 posted on 12/06/2010 3:54:54 PM PST by screaminsunshine (Americanism vs Communism)
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To: dirtboy

Quick. Turn on Sgt. Shultz to watch him puke his Cow Pie dinner up.


21 posted on 12/06/2010 3:56:29 PM PST by screaminsunshine (Americanism vs Communism)
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To: MamaDearest

True,but the political reality is that the GOP does not control the agenda — not even in the House until January —nor preidential approval or veto. So they have to get what they can and hope for a senate majority in two years when items can be altered.


22 posted on 12/06/2010 3:56:29 PM PST by Laur
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To: ejdrapes
http://www.resistnet.com/forum/topic/show?id=2600775%3ATopic%3A2975626&xgs=1&xg_source=msg_share_topic
23 posted on 12/06/2010 3:56:39 PM PST by seekthetruth (My 2012 Dream Ticket:: Jim DeMint / Allen West)
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To: Siena Dreaming

None till the end of December, then 55% on anything over $1 million.


24 posted on 12/06/2010 3:57:11 PM PST by Jedidah
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To: dirtboy
yeah for two years big deal. How does a two year extension help busines?. What happens in 2 years? Obama will get credit for caving and the GOP will get credit for nothing.
25 posted on 12/06/2010 3:58:00 PM PST by ejdrapes (Obamacare is both too complicated to succeed and to broken to repair)
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To: ejdrapes

Are there any drafts of the legislation available?

At this point I don’t know which will add more to the debt, no deal which would most likely mean more people on the UI rolls or cutting a deal to extend the deadline for those already on it and didn’t get 99 weeks. Higher taxes just shrinks the tax base by killing jobs. So they might get more from the rich, but unknown numbers of people will no longer be paying taxes because they’ll be laid off.

There might just be a certain level of practicality in cutting a deal to keep the tax rates from going up which, if allowed to occur, could be its own mini-disaster with little or no benefit to the revenue side. We might have won last month, but there is still this reality of having Obummer in the WH and the rats in charge of the lame duck to deal with, and over this topic time is not on our side.


26 posted on 12/06/2010 3:59:01 PM PST by dajeeps
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To: raybbr

Let me tell you about the American Opportunity Tax Credit (college tuition)—

my son became unemployed this summer and with this we thought maybe now he might qualify for some kind of aid (for once)to go back to school. Right.

Those numbskulls at Northern Virginia Community College had no idea about these $5k grants nor the rules for applying for them. They told him he had to wait a year until his income showed $0 (even though the Federal letter said they could zero out his income). Then after he did a waiver, he got a big fat zip. I have only met one person....who has ever gotten a grant or financial aid that WASNT a LOAN.


27 posted on 12/06/2010 3:59:16 PM PST by applpie
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To: ejdrapes
What happens in two years? A shot at a GOP president and a chance to make the cuts permanant.

Two years is better than them expiring at the end of the year.

28 posted on 12/06/2010 4:00:29 PM PST by dirtboy
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To: ejdrapes
The GOP allowed Obama to save a little face which is going to come back and bite them. This 13 month extension on unemployment is entirely too long. It is going to create even more of a welfare state.
29 posted on 12/06/2010 4:03:28 PM PST by tobyhill
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To: dirtboy
BTW in Obama's speech he said he's confident in 2 years people will realise that we shouldn't be lowering taxes for the wealthiest Americans. Obama wouldn't agree to this if it wasn't a win for him. And it is.
30 posted on 12/06/2010 4:06:31 PM PST by ejdrapes (Obamacare is both too complicated to succeed and to broken to repair)
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To: dirtboy
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.

At the rate they are going they will never gain control.

A two year period without tax increases is NOT going to spur an employment frenzy by any means.

It needs to be permanent or permanent employment will not increase.

It's good for temp agencies and that's about it.

31 posted on 12/06/2010 4:07:51 PM PST by EGPWS (Trust in God, question everyone else)
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To: ejdrapes

What is the latest on the estate tax?? Is it extended for 2 years or is something else pending?


32 posted on 12/06/2010 4:08:24 PM PST by hoyt-clagwell (5:00 AM Gym Crew)
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To: dajeeps; ejdrapes
dajeeps --> add an 'r' and you get...

ejdrapes

33 posted on 12/06/2010 4:08:41 PM PST by raybbr (Someone who invades another country is NOT an immigrant - illegal or otherwise.)
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To: ejdrapes

We got screwed...big time!


34 posted on 12/06/2010 4:09:23 PM PST by dfwgator (Congratulations to Josh Hamilton - AL MVP)
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To: ejdrapes
The deal is done?!

Obama caves? Capitulation? Surrender?

LOL

35 posted on 12/06/2010 4:10:35 PM PST by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: ejdrapes
BTW in Obama's speech he said he's confident in 2 years people will realise that we shouldn't be lowering taxes for the wealthiest Americans. Obama wouldn't agree to this if it wasn't a win for him. And it is.

Two years ago, Obama thought he had a mandate and pundits saw the end of the GOP.

They wuz wrong. Obama can delude himself all he wants, but there will be a further reckoning in 2012 and then the GOP can make the cuts permanent.

36 posted on 12/06/2010 4:11:46 PM PST by dirtboy
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To: Reagan Man
Obama caves? Capitulation? Surrender?

Apparently they STILL don't get it.

The people sound off and they sputter.

37 posted on 12/06/2010 4:13:46 PM PST by EGPWS (Trust in God, question everyone else)
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To: tobyhill
I agree that will actually increase the unemployment rate... but that is a good thing, since a high unemployment rate = Obama loses in 2012.

So if Obama wants to dig his own political grave... I say let him!

38 posted on 12/06/2010 4:15:51 PM PST by TexasFreeper2009 (Obama = Epic Fail)
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To: Siena Dreaming
Then 35% sounds good

It will not sound good to someone who is in the ICU December 31st of this year. It will sound much worse to the heirs.

The heirs will be sweating it out in the waiting room. Some of them, of course, will cut some deals with the health care 'provider' to move things along and make sure the inheritance isn't taxed.

39 posted on 12/06/2010 4:16:09 PM PST by ladyjane
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To: ejdrapes

“President Obama’s favored Making Work Pay tax credit,

Ah yeah that was a 400 dollar tax credit on income stated on a W2 only. If your income involved rents and royalties(self employed) then you got no tax break even though you payed the same amount in taxes for your income. Then there are seniors. The government decides who pays and who does not. In the end it all goes on the national debt and even those who got no tax break get the bill for those who did. In the end, We will be paying the ultimate price for the socialist mentality sweeping over this country. Spiritually I do not consider myself liable for any of that debt. I have taken nothing. For now though, I get stuck paying for it.


40 posted on 12/06/2010 4:18:54 PM PST by Revel
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To: ejdrapes

Two years was 0bama’s opening position. We should have argued for “Forever,” and settled on 6-8 years.

Who flipped already?


41 posted on 12/06/2010 4:24:40 PM PST by Uncle Miltie (0bama thought he'd find "common ground" on 0bamaCare because of ROMNEYCARE!)
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To: Siena Dreaming

13 month extension of unemployment? What are they nuts? extend through the Christmas to Feb 1, 2011!!! That is it. The longer this goes on the more the unemployment will be.. Why work when you can sit at home twiddle your thumbs and get $450.00 a week? i hope the Republicans don’t buy into this!!!


42 posted on 12/06/2010 4:25:23 PM PST by tallyhoe
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To: EGPWS

One of the major goals of the election victory on Nov2nd was to force Obama to hold the line on taxes and extend the Bush era tax cuts. That goal has been accomplished. Albeit, only for two years.

Bottom line, Obama has lost!


43 posted on 12/06/2010 4:25:27 PM PST by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: ejdrapes
yeah for two years big deal. How does a two year extension help busines?. What happens in 2 years?

Maybe instead of three quarters of the pie we should have held out for none of it at all. You know, there are some things more important than posturing.

44 posted on 12/06/2010 4:31:44 PM PST by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: dirtboy

Good points, dirtboy.


45 posted on 12/06/2010 4:32:39 PM PST by Fury
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To: Reagan Man
Bottom line, Obama has lost!

While Rome burns.

Photobucket

46 posted on 12/06/2010 4:35:47 PM PST by EGPWS (Trust in God, question everyone else)
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To: EGPWS

If you want a revolution, go dig up Thomas Jefferson.

Otherwise, this is a victory for conservatives and a huge loss for Zero and his leftist minions.


47 posted on 12/06/2010 4:39:32 PM PST by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: Siena Dreaming

In 2010 the estate tax rate is 0%.


48 posted on 12/06/2010 4:40:28 PM PST by Chesterbelloc
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To: Reagan Man
Otherwise, this is a victory for conservative

If this is victory, I'd hate to see defeat.

49 posted on 12/06/2010 4:40:37 PM PST by dfwgator (Congratulations to Josh Hamilton - AL MVP)
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To: Reagan Man
... this is a victory for conservatives the GOP and a huge loss for Zero and his leftist minions.
50 posted on 12/06/2010 4:41:44 PM PST by EGPWS (Trust in God, question everyone else)
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