Daily Kos is as progressive as any other standing left and forward media group out there. So, when Daily Kos publicly states that the President’s tax deal is a good thing, we need to do what the author of this article did — read what is in the tax deal:
- Working families will not lose their tax cut. A typical working family faced a tax increase of over $3,000 on January 1st. The framework agreement includes a mutually agreed upon solution to the impasse over taxes by extending the 2001/2003 income tax rates for two years and reforming the AMT to ensure that an additional 21 million households will not be hit with a tax increase.
- $56 billion for unemployment insurance extension. According to the Council of Economic Advisers, passing this provision will create 600,000 jobs in 2011 alone.
- $120 billion payroll tax cut for working families
- $40 billion in tax cuts for our hardest hit families and students
- 100% expensing for businesses next year
- Child Tax Credit: The $1,000 child tax credit will be extended for two years with the $3,000 refundability threshold established in the Recovery Act. This extension will ensure an ongoing tax cut to 10.5 million lower income families with 18 million children.
- Earned Income Tax Credit: The Recovery Act included an expansion of the EITC worth, on average, $600 in additional assistance to families with 3 or more children. It also helped working married families by reducing the marriage penalty in the EITC. Continuing this tax cut for two years will benefit 6.5 million working parents with 15 million children.
- American Opportunity Tax Credit: The Recovery Act included a new, partially refundable tax credit of up to $2,500 to help students and their families cover the cost of college tuition. This deal fully extends AOTC for two years, ensuring that more than 8 million students will continue to receive this tax benefit to help them afford college.
- A 2-year extension of the R&D tax credit and other tax incentives to support business expansion.