From the Wallstreetpit.com. Dec7th
Here are the details of the agreement on the Bush tax cuts: (see if you figure out what they mean)
1) The Bush tax cuts get extended for two years — with one ugly surprise: For the next two years, estates up to $5,000,000 will be protected from the estate tax, and the tax rate for the few estates that are taxed will be 35 percent. … The difference in expected revenue between the 2009 levels and the compromise levels is $10 billion or so.
2) The refundable tax credits are extended: The Earned Income Tax Credit, the Child Tax Credit and the American Opportunity Tax Credit were all pumped up in the stimulus, but set to expire this year. All of them will be extended. Price tag? $40 billion or so.
3) Unemployment insurance gets extended for 13 months: … In perhaps the most important part of the deal, there’s going to be a 13-month extension at a cost of $56 billion.
4) A 2 percent cut in the payroll taxes paid by employees: This is perhaps the most unexpected part of the compromise. Rather than extending the administration’s Making Work Pay tax credit for two years, which would’ve been worth about $60 billion a year, they’ve agreed to a one-year cut in the payroll taxes paid by employees, which’ll raise $120 billion in 2011. …