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Obama Tax Cuts: What's In It For YOU

When President Obama announced the new framework for taxes last night, there was a little something for everyone. I discussed the proposal with WCBS-TV this morning.}

  • Extension of the Bush-era tax cuts for all tax payers for two more years
  • Maintenance of the dividend and capital gains tax at 15 percent
  • Temporary cut of payroll taxes by two percent (6.2 to 4.2 percent) for one year. If you earn $50K/yr, this amounts to a savings of $1,000 and those who earn the SS wage base of $106,800, the savings are $2,136 per year
  • A 13-month extension of unemployment benefits
  • An estate tax of 35 percent above a threshold of $5 million
  • An adjustment to the alternative minimum tax, which would prevent over 21 million households from being hit by AMT
  • Extension of the college credit
  • Expansion of $1,000 Child Tax Credit
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