6:33: Obama is speaking. Says permanent tax cuts for the rich are too costly, and yet he’s not willing to risk a prolonged battle. Hence, temporary tax cuts.
6:34: As much as I sympathize with those who prefer a fight over compromise, Obama says he’s not willing to take the risk.
6:35: Make no mistake, letting the Bush tax cuts expire would have cost the economy wll over 1 million jobs.
6:35: But Obama is not willing to burden the deficit with a massive permanent tax cut.
6:36: We have arrived at a framework…
- For the next couple of years, every American family will keep their tax cuts.
- In exchange for a temporary extension of the tax cuts for the wealthiest Americans, we will keep other tax cuts (child tax cuts, earned-income-tax cuts).
- Under this agreement, unemployment insurance is extended another 13%.
- 2% employee payroll tax cut.
- In exchange, GOP asks for more generous treatment of the estate tax.
6:39: Obama says he doesn’t like parts of the deal (tax cuts for rich and large estates), but they will expire, he reminds. “It’s not perfect, but this compromise is an essential step on the road to recovery.”
6:40: And that’s it. Everything is extended for two more years, and we can do it all over again after the next election.
It sounds like there’s a deal in the tax/unemployment insurance debate.
Barack Obama will hold a speech at 6:10, and according to headlines from Reuters, it sounds like there’s a deal that would involve a 2-year extension of all bush tax cuts.
Obviously we’ll be covering live right here.
Just a little bit ago, it was announced that the White House would also float a payroll tax cut, but it’s not clear if this is part of that at all.
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