Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
        • 9 Convincing Reasons Why You Need An Emergency Fund
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
        • Cadre Real Estate Investing Review: Commercial Real Estate Investing
        • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

Deal Reached Between President Obama And GOP On Extension Of Bush Tax Cuts

By Peter Anderson 3 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited December 7, 2010.

Share
Pin
Tweet
Share
0 Shares

Over the past year or so we’ve been talking on this site quite a bit about the 2001 and 2003 Bush tax cuts, and whether or not they would be renewed in some form before they expire on December 31st.  We looked at what would happen to the tax rates if they weren’t renewed, and explored some of the alternative plans that were floated by members of congress.

While I’ve thought for some time that Congress would probably act to get something done on the tax cuts, as we get closer and closer to the end of the year I’ve started to have my doubts.  Last night, however, President Obama announced that a deal with Congressional Republicans had been reached to extend the tax cuts for everyone.  In return the Obama got concessions on extending unemployment insurance for another 13 months.  Here is Obama announcing the deal.

Bush Tax Cuts Extended If Deal Is Approved

So President Obama and Congressional Republicans have come to agreement in principal on extending the tax cuts.

President Obama and congressional Republicans agreed Monday to a tentative deal that would extend for two years all the Bush-era income tax breaks set to expire on Dec. 31, continue unemployment benefits for an additional 13 months and cut payroll taxes for workers to encourage employers to start hiring.

Obama was able to extract an agreement from GOP leaders to support an additional 13 months of jobless benefits, a 2 percent employee payroll tax cut and extensions of several tax credits aimed at working families that were included in the stimulus bill.

The deal has been in the works for more than a week and represents a concession by Obama to political reality: Democrats don’t have the votes in Congress to extend only the expiring income tax breaks that benefit the middle class. The White House estimates that the proposed agreement would prevent typical families from facing annual tax increases of about $3,000, starting Jan. 1.

What’s In The Deal To Extend The Tax Cuts

So what exactly is in this deal that was approved by Obama and Congressional Republicans?

  • Extension of Bush tax cuts for everyone, for 2 years.
  • Reduction of Social Security tax levied on a worker’s wages from 6.2%  to 4.2% for one year.
  • Reinstatement of the estate tax at 35%.  First $5 million for individuals and $10 million for couples is exempt.
  • Extension of jobless benefits for another 13 months, beyond current 99 weeks.
  • Extension current tax rates on capital gains and dividends for two years, including for higher earners.
  • Extension of business tax breaks, including credit for spending on research.

Not Everyone Happy  With The Deal

By coming to agreement on extending unemployment benefits and extending the tax cuts Obama hopes to be seen as someone who can work with the other side, and make concessions when the political reality forces him to.  Many congressional democrats aren’t happy with the deal, however.

In reaching the deal, whose details still need to be worked out, Mr. Obama brushed past the demands of many in his own party to curb tax cuts for the wealthy. Some liberal lawmakers and activists were left seething, particularly over last-minute concessions to Republicans on the estate tax. Democratic leaders didn’t agree to the deal during meetings on Monday with Mr. Obama and Vice President Joe Biden, according to a House aide.

“I can tell you with certainty that legislative blackmail of this kind by the Republicans will be vehemently opposed by many, if not most, Democrats,” said Rep. John Conyers (D., Mich.).

In the Senate, Tom Harkin (D., Iowa) called it “an understatement” to say he was disappointed.

So what else was approved by Obama and Republicans as part of the deal?  The estate tax would be reinstated for certain folks.

The deal also would revive the estate tax, but it would exempt inheritances of up to $5 million for individuals and $10 million for couples. Democrats on Capitol Hill are strongly opposed to setting the cap at that high a level and to the 35 percent rate discussed by Obama and Republicans that would apply to the taxable portion of estates.

Will The Deal Be Passed By Congress?

Obama expressed that it was important that a deal get done, and the White House will be sending Vice President Biden to discuss the deal with Senate Democrats today.

In brief remarks Monday evening, Obama said he was disappointed that the deal would extend breaks for the wealthiest households, but he warned Democrats not to make good on threats to allow all the cuts to expire, as an expression of the party’s opposition to preserving the top-rate cuts. “Sympathetic as I am to those who would prefer a fight to compromise, it would be the wrong thing to do,” the president said. “The American people didn’t send us here to wage symbolic battles.”

The White House is preparing for significant opposition from Democrats and will send Vice President Biden to meet with Senate Democrats on Tuesday. Later on Tuesday, House Democrats are scheduled to discuss the proposed deal.

Both the President and Republicans have ok’d the deal, so will Congressional Democrats fall in line as well?  Indications are that they don’t want to, but my guess is that they will agree to this deal in some form.  They don’t want to be the ones to hold up tax cuts for the middle class, and President Obama agreeing to this deal has put them in a bind in regards to that.

What do you think will happen with the Bush tax cuts?  Will this deal be passed?  Do you think that both sides compromising on issues that they previously said they wouldn’t mean that this deal is the best of bad options? Tell us your thoughts in the comments.

Related Posts

  • President-Elect Obama Talks About Tax Cuts And Stimulus Package

    In his address this week President-elect Obama talked about how his administration plans to face the many economic challenges that face them this coming year.…

  • President Obama Appoints Geithner and Lew To Negotiate A Resolution To Bush Tax Cuts

    As the end of the year comes ever closer, and Congress gets ready to adjourn for the year, there has still been no action on…

  • Will The Bush Tax Cuts Be Extended By Obama And Congress Into 2013 And Beyond?

    At the end of the 2012 tax year the Bush (or Obama) tax rates will increase to previous levels. Will the President and Congress act…

Share
Pin
Tweet
Share
0 Shares
Last Edited: 7th December 2010 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Economy, News, Taxes

About Peter Anderson

Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his 2 children. He loves reading and writing about personal finance, and also enjoys a good board game every now and again. You can find out more about him on the about page. Don't forget to say hi on Pinterest, Twitter or Facebook!

Comments

    Share Your Thoughts: Cancel reply

  1. Kevin says

    I think the deal will pass. Now I’ll never know who would have been blamed if the democrats kept arguing with the republicans over the high end tax cuts.

    Reply
  2. moneyedup says

    If this passes we will be giving unemployment benefits for 13 months plus 99 weeks, so just about 3 years? That just seems nuts.

    I’m not a big fan of the payroll tax cut (social security is already underfunded enough) but I wish we could make the Bush tax cuts permanent. We’ll see if this makes it past the vote.

    Reply
  3. lee says

    there they go again, passing the unemployment ext.and not mentioning anything about the one time payment of 250.00 for people on s.s. thats what happened last year to..you here alot about passing another stimlus bill for a one time payment of 250.00 for people on s.s. till after elections,,then you never here about it again,,people arn’t stupied,they well figure it out..and s.s.people don’t get another raise for another year..that hurts alot of poor people, you just don’tknow who to vote for anymore…maybe ross parole..lee

    Reply
Previous Post: Why I Don’t Teach Tithing
Next Post: Thoughts On Escaping The Middle Class
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • How To Save $100k In 7 Practical Steps
  • How to Save Money When Remodeling A Home
  • How To Hire A Contractor For Your Remodeling Project
  • Remembering 9/11 Years Later: Where Were You On That Fateful Day?
  • TradeStation Review: Commission Free Stock And ETF Trades
  • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
  • Cadre Real Estate Investing Review: Commercial Real Estate Investing
  • Best Sites Like Fiverr To Make Money As A Freelancer
  • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
  • 30 Quotes About Easter And Resurrection: He Is Risen!

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2023 · Bible Money Matters | Sitemap | Advertise | Privacy Policy