Ezra Klein has a summary of the highlights of the tentative agreement Obama has reached with House Republicans. It could still fall through, but it looks like they have a deal for now.
Ezra Klein - An imperfect, but not-that-bad, deal on the tax cuts
Some of the highlights of the agreement:
- Bush tax cuts extended for two years
- Estates will be taxed at 35%, with the first $5M exempted, for two years
- The EITC, child tax credit, and American opportunity tax credit are extended for two years
- Unemployment insurance gets extended for 13 months
- A 2% cut in the payroll tax paid by employees for one year
- Businesses will be allowed to expense their long-term investments for the next two years
Looks like a wholesale capitulation to the GOP to me. There's a lot of stuff that the GOP wanted, some stuff that everyone wanted, and really nothing that the Democrats wanted and the GOP didn't aside from an unemployment extension. Obama played his hand absolutely horribly here.