As CNN reports President Obama announced an agreement in principle with GOP leaders in Congress which would provide that all taxpayers not merely those below $250,000 maintain the tax cuts. That there be a 2% payroll tax reduction and that the estate tax rates drop to 35% while the exemption amount is reinstated at $5m larger than it has ever been while there is an estate tax. These would be extended for 2 years. In return the GOP would allow unemployment compensation extended for another 13 months and not need to be paid for but be merely added to the deficit as Obama and Democrats would like.
The article does mis state that the estate tax would go to a $3.5 million dollar exemption if no action were taken though. It would actually go to $1m if no action were taken for the estate tax exemption and the rates would be a lot higher. This has not also been agreed to by the Democratic legislative leaders yet though or the full GOP rank and file so it will be interesting to see what happens and there may still be a tax dispute in seeking to pass the legislation.