Leaders Discuss Two-Year Extension of Tax Cuts

[Casino67]

WallStreetJournal.com:

A potential compromise over the Bush-era tax cuts could extend existing rates for two years along with keeping targeted breaks for businesses and individuals, while granting a one-year extension of emergency unemployment benefits.

Negotiators for President Barack Obama and congressional leaders of both parties are trying to work out an agreement on tax breaks that have expired or will expire at year's end. But the elements of a final compromise package remain unclear, and lawmakers and aides are hoping a deal can be reached in the coming weeks.

A deal that would extend the tax cuts could come at a substantial price for the government—possibly more than $500 billion over two years, according to informal estimates by congressional aides as well as private-sector analysts. The price could even reach $800 billion, if the extension of the Bush tax cuts is combined with renewals of the other tax breaks—at a time when Americans appear worried about deficits and debt.

A final deal might not only extend the lowered income-tax rates signed into law by President George W. Bush, which end on Dec. 31, but also the corporate research credit, a long list of alternative-energy subsidies and targeted breaks for motorsports tracks, restaurants and filmmakers. A deal likely would preserve current income-tax rates for all earners, including the lower rates for the wealthy that many Democrats had hoped to end.


----------------------------

Why is a tax cut a 'cost' for the government, but not a cost for the tax-paying public? There are untold numbers of money-wasting programs that continue to be funded needlessly.

[Sabre86]

The one problem is, if this passes, then expect a repeal of DADT and passage of the DREAM Act to follow right behind it.

[Casino67]

The one problem is, if this passes, then expect a repeal of DADT and passage of the DREAM Act to follow right behind it.

 

I think the quid pro quo is the extension of the unemployment payments. Talk of extending for another year. I think the government should fund enough people to confirm with employers as to whether or not the unemployed even filed an application.

[AceRimmer]

The one problem is, if this passes, then expect a repeal of DADT and passage of the DREAM Act to follow right behind it.

 

I think the quid pro quo is the extension of the unemployment payments. Talk of extending for another year. I think the government should fund enough people to confirm with employers as to whether or not the unemployed even filed an application.

 

I agree. The GOP should hang tough on at least a minimum 2-year extension of the Bush cuts for everybody, extending unemployment for a year, and yield absolutely nothing else, like DADT, Dream Act or START.