Obama Unveils Broad Accord To Extend All Bush Tax Cuts

As the road to global economy recovery from one of the greatest financial crisis in 2008 is tough and uneasy, it can be certain that most of the governments are committing to work harder for the best solutions to stimulate and grow the economy, without fail. Should there be any economy growth soften detected, there will be a better solution to encounter the matter. Generally, an "effective Tax Cut" is one of the common methods implemented broadly.

President Obama announced a broad "framework" agreement with Republicans that would extend all Bush-era tax cuts for two years, keep the dividend and capital gains tax at 15 percent and temporarily cut payroll and Social Security taxes.

Democrats, however, are resisting the deal and will meet Tuesday to discuss the plan. Earlier Monday, there were reports that a deal was "all but done."

Some key elements of the Obama/GOP deal include:

• Two-year extension of all Bush tax cuts
• Dividends and payroll tax would remain at 15 percent
• A 13-month extension of unemployment benefits
• A two percentage point cut in the payroll tax for one year.
• A one-year cut in Social Security taxes
• An estate tax at 35 percent with a $5 million exemption, proposed by Republicans.

The overall cost in lost revenue to the government is at least $450 billion in 2011 and could climb as high as $600 billion depending on how much the economy grows over the next two years.

Speaking at the White House, Obama said there were elements of the deal he personally opposed, including an extension of expiring income tax cuts at upper income levels and a more generous deal on estates.

But he said he decided that an agreement with Republicans was more important that a stalemate that would have resulted in higher income taxes at all income levels on Jan. 1.

"Make no mistake, allowing taxes to go up on all Americans would have raised taxes by $3,000 for a typical American family and that could cost our economy well over a million jobs," he said.

(Kindly click on the Title to link to CNBC news for more, Source: CNBC)