Tom Cohen of CNN wrote an article today discussing that the tax compromise agreed to President Obama and the White House Administration and the Republican leaders in Congress will come to the floor despite threats to prevent it from Democratic leaders in Congress.
Senate Dick Durbin of IL The # 2 leader in the Senate for the democrats said that "If we want to change Washington and move in the right direction we need to stand together and compromise so that he was supporting the bill.
Among its provisions an extension of the Bush era Tax Cuts which the Congressional Budget Office scored as costing $400 Billion. $225 Billion worth in a 2% reduction to the payroll tax for a year.
$57 Billion to extend the unemployment compensation provisions which have already been extended a few times for another 13 months and a $5 million dollar estate tax exemption with a 35% rate.
Congressional Democrats point out that the estate tax change from $3.5 million which congressional democrats agreed to instead of the $1 million with a 55% rate that it was scheduled to go to up to $5 million exemption amount increase its cost from just $25 B for the 2 year term when it had a 45% rate to $68 Billion for the same two year period while only impacting 6600 families during that time. Congressman Paul Ryan a Republican however responded that the estate tax is currently 0 and is increasing to 35% and it is a compromise to move it that much and start the estate tax again but they would not lower the exemption amount. Congress will likely work out this tax dispute soon as it is coming to the floor tomorrow and there are only a few days remaining of the legislative term prior to the holidays and members of Congress going back to their districts.
http://www.cnn.com/2010/POLITICS/12/12/tax.plan/index.html?hpt=T1