Obama and GOP Reach Agreement on Tax Rates

Now all the Dems need to do is roll over and go along with this and every American that pays income taxes will be spared a tax increase on January 1:

President Obama and congressional Republicans have reached a tentative deal to extend the Bush tax cuts for all income levels and are presenting the proposal to congressional Democrats Monday afternoon, The Daily Caller has learned.

The deal will extend the current tax levels for two more years, preventing taxes from going up on any income levels, despite the wishes of many liberal Democrats — including Obama — that individuals making more than $200,000 a year and families with more than $250,000 a year in income see their rates go up.

In exchange, Republicans have agreed to extend unemployment insurance benefits for an additional 13 months.

Obama presented the proposal to Democratic congressional leaders at the White House Monday afternoon, seeking to obtain their approval for the deal.

A House Democratic leadership source cautioned that the full party caucus will need to give their approval to any deal, which House Speaker Nancy Pelosi, California Democrat, will likely present to them at a Tuesday evening meeting.

Other details include a temporary two percent reduction in payroll taxes to replace Obama’s “Making Work Pay” tax credit from the 2009 stimulus bill, and a compromise on the estate tax, which will be set for two years at 35 percent, with a $5 million exemption amount.

Of course, if you're rich you still should plan to die before the end of the month to spare your heirs a huge estate tax bill. The only fair estate tax rate is zero, but Democrats will never go for that.