The end of the year is coming quickly, and if you’re paying attention to the debate about the Bush tax cuts, you may have noticed that nothing has happened yet. There hasn’t been any action on extending the tax cuts for either the higher income earners, or everyone else. If they aren’t extended, everyone’s taxes will go up.
Currently the Democrats and Republicans are trying to work out some sort of a compromise that would allow the tax cuts to be extended. The Democrats only want to extend them for those making less than $250,000, while the Republicans want them extended for everyone. The Republicans have drawn a line in the sand saying that they won’t allow anything except an extension of the cuts for everyone, and have promised to not vote for cloture on anything else in the lame duck session until the tax cut problem has been addressed.
As of yesterday it sounds like most people think that the cuts will be extended for all taxpayers, but possibly not permanently. In other words, they’ll have to address the issue in a few years once again. Why are the Democrats willing to cave in on this one? Possibly for concessions on extending unemployment benefits – as those are expiring soon as well for those who have reached the 99 week limit, and the unemployment rates continue to rise – up to 9.8% last month.
Geithner and Lew appear to be stuck in the middle, sources said. A senior Democratic aide said that the White House’s message has been clear: “You can’t leave town without doing something.”
Sources have predicted that the final agreement could include a full extension of the tax cuts for two to three years and an extension of unemployment insurance and a package of other tax extenders. [source]
What do you think will happen? Will they pass an extension before the session ends? Or will there be too little room for compromise?
Lots of great articles from around the blogosphere this week. Here are a few of my faves.
Hope you have a great weekend!
This post was last modified on December 3, 2010, 1:49 pm
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