Earlier this evening Obama announced a deal reached with the GOP over taxes. Here are the details:
- Extends unemployment insurance for 13 months. Two million workers in December, and 7 million over the next year, would have lost benefits otherwise.
- Provides a one-year, 2 percentage point reduction in employees’ Social Security payroll taxes, lowering the rate from 6.2% to 4.2%, at a cost of $120 billion.
- Keeps the Earned Income Tax Credit and American Opportunity Tax Credit increases from last year’s economic stimulus law, for another $40 billion in tax cuts for families and students.
- Allows business to write off 100% of their capital purchases next year.
- Sets the estate tax at 35% for two years, with a $5 million exemption on assets that’s higher than last year’s $3.5 million. The rate came down under Bush’s policy from 55% before 2001 to 45% in 2009 before expiring this year. It was set to return at 55% next year.
- Protects millions of taxpayers from seeing their taxes raised in 2010 and 2011 under the Alternative Minimum Tax.
Levin has poured over the numbers and believes the GOP let themselves get stuck with nothing but the status quo and the Democrats got more taxes and tax credits. So basically it’s a bad deal all the way around: