Obama Announces 'Framework' for Deal With Congress to Extend Bush-Era Tax Cuts - FoxNews.com
Notably, unemployment benefits will be extended by 13 months (taking it to 3+ years), and social security taxes will be reduced from 6.2 percent to 4.2 percent, giving everyone a few extra bucks in their next paycheck.President Obama
and White House officials underscored the need to compromise Monday in unveiling a congressional deal to avoid the expiration of the Bush-era tax cuts at the end of the year, but some of the toughest critics of Obama's version of compromise come from within his own party.
Democrats have generally argued that the tax cuts should be extended for the middle class -- but not for the wealthiest 2 percent. Republicans have argued that the cuts should be extended for all taxpayers.
The "framework" of the deal that Obama outlined Monday evening calls for a two-year extension of the cuts in all income tax brackets. It also would extend long-term unemployment benefits through next year. The estate tax rate would be renewed, but at a lower rate than even during the Bush administration. And the Obama administration is proposing a one-year payroll tax reduction that sources say would cut the amount contributed to Social Security from 6.2 percent to 4.2 percent.
From a business perspective, not only will the Bush tax cuts be extended, small businesses will now be able to deduct 100 percent of their capital improvements/investments in their company (up from 50 percent before).
This is more proof that Democrats like Obama run on these platitudes to get votes, but they know the only way to truly stimulate the economy is to put the money in our hands. The recent elections, and the real world, left him no choice but to go the GOP way and then engage in spin control.
The problem for Obama is that, because he didn't extend the cuts for more years, the debate will rage on for the next two years until the issue comes back, just in time for the 2012 presidential election. And what far left liberals are going to trust him now.
I will say this: I'm grateful that he capitulated, although extending the benefits to over two years seems like a bad message. Many Americans are licking their chops at free money for no work for three years. We all know a few folks like that.