Key details of the tax-cut extension deal
- December 14, 2010 - 7:50 PM
Tax cut extension: Temporarily extends all the Bush-era tax cuts -- which expire Dec. 31 -- including for the wealthiest 1 percent of Americans.
Estate tax: Exempts first $5 million of a deceased person's estate, and taxes rest at 35 percent.
Jobless benefits: Extends aid for the long-term unemployed for an additional 13 months.
Payroll tax cut: Creates a one-year reduction in payroll taxes. For an individual earning $110,000, that would reduce payroll taxes by $2,136. But it means higher tax bills -- a few dollars a week -- for individuals with incomes below $20,000 and families that make less than $40,000.
Other tax credits: Extends child credit, the child and dependent-care credit and the tuition deduction. As a result, families with an income near the median of $55,000 would owe about $2,700 less in taxes than if the cuts expire.
The cost: Contributes almost $1 trillion to the federal budget deficit over two years.
What's next: After Senate approval, the bill goes to the House. Democratic leaders said they would not schedule a vote without changes to make it less generous to the wealthy.
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