Senate leaders issued an agreement designed by the White House and Republicans to keep rates the Bush tax until 2012, the estate tax set at the lowest rate in 80 years, increase aid and reduce unemployment payroll taxes by 2 percentage points.
Legislation to add 857 billion U.S. dollars to the federal debt over 10 years, government analysts.
President Barack Obama, in an interview with NPR Broadcast News today, said he is "confident" that the tax treaty will largely intact to keep the tax cuts that expire at the end of the year. "No one - Democrat or Republican - wants to see paychecks of the smallest people on Jan. 1 because Congress did not act," he said.
Senate Majority Harry Reid introduced legislation late yesterday after three days of pressure from Democrats to include measures excluded from the framework announced Dec. 6 by Obama. The measure includes provisions in favor of Democrats, such as ethanol subsidies renovated nearby. Others, such as an extension of the Build America Bonds, did not make the cut.
Reid scheduled a procedural vote on the bill December 13.
The congressional Joint Committee on Taxation, which estimates the revenue effects of tax legislation, said the provisions will cost the government $ 801 300 000 000 of revenue forgone for 10 years. Extending unemployment benefits for 13 months, another feature of the package would cost $ 56 billion, says Obama administration.
The proposal would extend the Bush-era cuts taxes for all income levels. A two-year extension of those guys that cost $ 407 600 000 000, according to the Joint Committee on Taxation.
Capital gains, dividends
The bill would maintain the reduced rates enacted in 2001 and 2003 on income, capital gains and dividends from expiring on Dec. 31. To preserve the current rate of 15 percent for most dividends and capital gains, like 10, 15, 25, 28, 33 and 35 percent tax rates on income.
The $ 1,000 child credit to avoid being cut in half, the abolition of the so-called marriage penalty would remain, and tax credits to subsidize the adoption, higher education and childcare will be extended.
The bill includes provisions of the law last year's economic stimulus Democrats in favor, including a grant from the Treasury instead of tax credits for solar, wind and renewable energy conversion. The change helps businesses unprofitable and could not take advantage of the credits.
In the long term unemployed
The bill to extend federal unemployment insurance for long-term unemployed for 13 months, covering all of 2011, and cut workers' participation in Social Security taxes to 4.2 percent. Would be temporary alternative minimum tax rate, he backed a tax increase provides $ 136700000000 affect some 21 million Americans this year and next.
"If this commitment is, all taxpayers are going to win," said Kathy Pickering, executive director of the Institute of Tax H & R Block in Kansas City, Missouri. "First of all, being able to take advantage of the credits will expire and not having the increased tax rate."
A provision Democrats who many call the most objectionable would create a rate of 35 percent additional tax on properties that would apply after a minimum exemption of $ 10 million per couple is exhausted. The 2001 law temporarily eliminated the estate tax for the year 2010 only, and the rate is scheduled to return in 2011 with a rate of 55 per cent higher and a $ 2 million per couple, tax free.
House Democrats cited the provision, championed by Arizona Republican Sen. Jon Kyl, one of the main reasons yesterday approved a nonbinding resolution to block consideration of the context of the White House-Republican "in its current form." House of Representatives, Nancy Pelosi, a California Democrat, said he still can bring a bill to the floor.
Business Deductions
For businesses, the measure provides an opportunity for a year to deduct the cost of investment, including software, equipment and entire factories instead of despising the acquisitions over time as the current rules require. The provision would be effective for purchases after September 8, the day that Obama first proposed the idea.
Companies also benefit from a two-year retroactive reinstatement of dozens of tax cuts, many of which expired a year ago. Among them: a research tax credit claimed by thousands of companies like Harley-Davidson Inc. and Microsoft Corp. tax deferral benefits associated with the activities of foreign loans by companies such as General Electric Co. and JPMorgan Chase & Co., again be allowed.
A 45 cents per gallon tax credit for ethanol production, which expires at year's end, would extend for one year.
Bond Program
The measure does not include some features of the economic stimulus bill of 2009 that expire at the end of the year. The legislation allows the program to Build America Bonds to take effect, for example. The program has been the fastest growing segment of the municipal bond business and the U.S. has been a source of subscription rates for companies like Goldman Sachs Group Inc. and Bank of America Corp.
Also excluded from the package was a renewal of a tax break sought by state lawmakers wood. Established by the 2008 farm bill provides for a tax rate of 15 percent of capital gains from sales of company-owned timber. The provision, which would cost 339 million U.S. dollars to renew until next year, expired in mid-2009.
The measure omits an extension of the power of advanced manufacturing, which has provided tax credits to companies investing in battery technology. The administration has been seeking an infusion of 5 billion U.S. dollars in the program.
Companies such as Dow Corning Corp., EI DuPont de Nemours & Co., GE and United Technologies Corp. took advantage of an initial $ 2.3 billion for the program in the stimulus bill.
The agreement has no fiscal compensation to increase revenue. Not include higher taxes on carried interest earned by fund managers of private capital and some real estate investors. Many Democrats have been trying this compensatory income tax as ordinary income, not capital gains.
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