As I thought, the extension of Bush’s tax cuts will go hand in hand with extending unemployment for 13 months. It is slowly winding its way through Congress, and many Democratic congressmen may not back the President.
Tax rates, including 15% on long-term capital gains and dividends, stay the same, except for payroll and estate taxes.
Social secuity taxes for employees (not employers) go down 2% (I assume also for half of SE tax), while estate exclusion will be 5,000,000 and top rate 35%. The child-care, earned income and education credits will get extended and the AMT gets indexed for inflation. This is good for 2011 and 2012, just in time for the Presidential Elections.
I am curious to see how long it takes for this bill to be passed, reconciled and signed. We will see.