Congress is closing in on a deal to extend Bush’s Tax Cuts

Democrats were pushing to extend Bush’s Tax Cuts for those taxpayers who make an amount equal to or less than $250,000 for married or $200,000 for single.  However, Republicans were looking to extend the tax cuts for all income levels, keeping the original tax cuts in place.

White House officials and Congressional Republicans said Sunday they were closing in on a deal to temporarily continue the Bush-era tax cuts at all income levels, while bitterly frustrated Democratic Congressional leaders began exploring whether they would have the votes for such a package.

Many Republicans say they want a permanent extension of the rates, or as long an extension as possible. Democrats say they would not mind the issue coming up during Mr. Obama’s re-election bid, because they see it as politically helpful to them in painting Republicans as defenders of the rich. The debate, of course, could cut the other way, with Republicans again portraying Democrats as seeking to raise taxes.

Some Congressional Democrats have suggested a willingness to let the tax rates expire for everyone at the end of the year, and to press the fight into next year. At the same time, some prominent economists have counseled that it would be wise not to substantially raise taxes or cut spending at the moment given the risk of further hindering an already precarious economic recovery.

We will keep you posted as the information about the Congressional Decisions regarding the tax cuts come out.

Source:  New York Times