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"1.PAYROLL TAXES. It would reduce the 6.2 percent Social Security payroll tax on all wage earners by two percentage points for one year, putting more money in the paychecks of workers.
2.CAPITAL GAINS, A.M.T. The top rate of 15 percent on capital gains and dividends would remain in place for two years, and the alternative minimum tax would be adjusted so that as many as 21 million households would not be hit by it.
3.TAX CREDITS. The deal would also renew the American Opportunity Tax Credit, for undergraduate expenses, for two years (it was set to expire in 2010). Meanwhile, the child tax credit — which reduces your tax bill by $1,000 per child — will be extended for another two years.
4. UNEMPLOYMENT INSURANCE. The agreement provides for a 13-month extension of jobless aid for the long-term unemployed. Benefits have already started to run out for some people, and as many as seven million people would potentially lose assistance within the next year.
5. ESTATE TAX. In addition to dropping his opposition to any extension of the current income tax rates on income above $250,000 for couples and $200,000 for individuals, President Obama agreed to a deal on the federal estate tax that has infuriated many Democrats. The deal would ultimately set an exemption of $5 million per person and a maximum tax rate on estates of 35 percent — a higher exemption and far lower rate than many Democrats wanted." NY Times
This is what the deal includes. When life hands you lemons ~ make lemonade.
If Republicans don't get the tax cuts for the richest Americans they will screw the unemployed, allow tax incentives from the stimulus to expire and will continue to use Americans as pawns in a suicidal game of chess.
The compromise package is not what we all want but is probably the best the Republican party is going to allow through congress.
Q Mr. President, what do you say to Democrats who say you’re rewarding Republican obstruction here? You yourself used in your opening statement they were unwilling to budge on this. A lot of progressive Democrats are saying they’re unwilling to budge, and you’re asking them to get off the fence and budge. Why should they be rewarding Republican obstruction?
THE PRESIDENT: Well, let me use a couple of analogies. I’ve said before that I felt that the middle-class tax cuts were being held hostage to the high-end tax cuts. I think it’s tempting not to negotiate with hostage-takers, unless the hostage gets harmed. Then people will question the wisdom of that strategy. In this case, the hostage was the American people and I was not willing to see them get harmed.
So why exactly is everyone so angry with the President? Voters created this mess by electing Republicans and creating a "Lame Duck Session". What did you expect? You shackle the President and expect him to walk on water. At the very least he is doing the best with what he has been handed.
