The Spectacle Blog

Report: WH,GOP Reach Tentative Deal on Two Year Extension

By on 12.6.10 | 3:48PM

Jon Ward at the Daily Caller is reporting that President Obama has reached a tentative deal with Republicans that would extend all of the Bush tax cuts for all income levels for two years, while also extending unemployment insurance for 13 months.

Ward also notes that, "Other details include a temporary two percent reduction in payroll taxes to replace Obama’s “Making Work Pay” tax credit from the 2009 stimulus bill, and a compromise on the estate tax, which will be set for two years at 35 percent, with a $5 million exemption amount."

I'd like to see more details, but at first blush, I'm happy to see the payroll tax relief come in the form of an actual rate cut, as opposed to sending out $400 checks to people, which is more like a welfare payment.

Earlier today, I wrote about why a two-year extension would be problematic for Obama politically, given that it would elevate the issue in the 2012 election.

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