Not a done deal yet, but what is being reported this afternoon (and it's nice to see the GOP start to "compromise" for the first time in 2 years, although their compromise essentially lays in seemingly agreeing not to keep beating the shiat out of Obama and keep taking his lunch money). And it is notable that the most important thing to the GOP, the hill they die on, is pleasing the wealthy.
Update: must be done deal, WH announcement at 6:10pm tonight.
Quote:
That said, the contours of an final package emerged with more detail than ever before. While it's clear that the White House gave in on its main front -- the desire to let the tax levels for the upper-income levels revert to pre-Bush rates -- administration officials claimed that they were able to secure major victories in return.
In exchange for allowing those rates to continue for two years, Republicans agreed to extend unemployment insurance for an additional 13 months, to offer a two-percent employee side payroll tax credit (at a cost of about $120 billion), and $40 billion in tax breaks for families and students (including a $1,000 child tax credit extended for two years and an expansion of the earned income tax credit)
Finally, the final deal would include a 100% expensing for businesses to write off purchases of outdated equipment -- another key element of Obama's fiscal plans. There also would be a compromise on the estate tax, which will be set for two years at 35 percent, with a $5 million exemption amount, according to the Daily Caller, which first reported the arrangement.
Briefing The Huffington Post about the deal, which could be announced as early as Monday night, the two senior administration officials claimed that they were able to get more bang for their buck than previously imagined. The costs for the payroll tax holidays, UI and other refundable credits come in at roughly $215 billion over two years. The extensions of the income tax rates strictly for the wealthy is estimated to cost about $95 billion. All of it is unpaid for. But the former provisions are more stimulative than the latter.
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