President Obama Compromises: Bush Era Tax Cut Deal Now Goes to Congress

December 6, 2010

by Diane W. Collins


Obama's Compromise

President Announces Bush Tax Cuts Deal

Upon return from North Carolina this afternoon, President Obama met with Democrat leaders at The White House to craft a compromise on the Bush Era Tax Cuts extension.


The President held an evening press conference to describe the basics of the deal. He said over the next two years every American family will keep their tax cuts... including parents and students in exchange for extending the Bush era tax cuts for everyone on the temporary basis of two years.


Included in the deal are the Earned Income Tax Credit, Child Tax Credit, The American Opportunity Tax Credit for students and thirteen months of Unemployment Insurance Benefits. Also, there will be a two percent employee payroll tax cut and incentives for businesses "to completely write off their investments for next year."


In exchange, Republicans want a more generous estate tax treatment as well as the extension of the Bush era tax cuts for everyone. The President said "this has merit" but it will be temporary. The tax cuts in the deal are set to expire in two years.


All of this must play out in the House and Senate during the remainder of the lame duck session of the 111th Congress. The President said he is "confident Congress is going to do the right thing." It's going to be an interesting week.


Contact: Representatives, Contact: Senators



Further Reading: