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Tax Deal Reached

6:09 PM, Dec 6, 2010 • By JOHN MCCORMACK
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The Daily Caller's Jon Ward reports on a tentative tax deal between Obama and congressional Republicans: 

The deal will extend the current tax levels for two more years, preventing taxes from going up on any income levels, despite the wishes of many liberal Democrats — including Obama — that individuals making more than $200,000 a year and families with more than $250,000 a year in income see their rates go up.

In exchange, Republicans have agreed to extend unemployment insurance benefits for an additional 13 months.

Obama presented the proposal to Democratic congressional leaders at the White House Monday afternoon, seeking to obtain their approval for the deal.

A House Democratic leadership source cautioned that the full party caucus will need to give their approval to any deal, which House Speaker Nancy Pelosi, California Democrat, will likely present to them at a Tuesday evening meeting.

Other details include a temporary two percent reduction in payroll taxes to replace Obama’s “Making Work Pay” tax credit from the 2009 stimulus bill, and a compromise on the estate tax, which will be set for two years at 35 percent, with a $5 million exemption amount.

The tax rate for capital gains and dividends will be maintained at 15 percent.

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