Tuesday, December 7, 2010

Tax Deal Suggests New Path for Obama

To go along with the article I posted yesterday ---
Monday Obama announced a tentative deal with the republicans in congress over the Bush tax cuts. Obama and the democrats will agree to extend the tax cuts to all income levels (although they wanted to only extend them for the middle class bracket).
Therefore, the republicans agree to raise the aid to the long term unemployed and to cut payroll taxes for all workers for a year.
The debate between the parties over the Bush tax cuts has been the first standoff since the midterm elections. Although the newly elected republicans are not overriding the democrats, Obama appears to be struggling with his own party as he pushes to get things done and maintains his very liberal mindset.
This package will cost about $900 million over the next two years.

Interesting for us - this will continue a college tuition tax credit for some families.

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