Obama and the GOP reaching a deal on tax cuts. Awful. Update: Correction for Unemployment Insurance
With the deadline approaching rapidly our esteemed representatives must act quickly to decide the fate of millions of Americans that are one month away from a tax increase. Yes, it is quite fair to call it a tax increase despite the levels returning to pre-Bush levels because Americans will be paying more in taxes come 2011. As ABC reports the details of the compromise are as follows : extending lower Bush tax rates for EVERYONE for 2 more yrs; extending 99 weeks’ worth of unemployment insurance benefits for an additional 13 months for approximately nine million Americans – without being offset by spending cuts; one year payroll tax reduction for employees -- from 12.4% to 10.4% ($120 billion worth). This is instead of the “Making Work Pay” tax credit in the stimulus bill – an administration officials says this will “will have more than twice the economic impact next year as a one-year extension of Making Work Pay.” It also will be more noticed than that tax credit, which man