Harry Reid Announces Senate Tax Cut Bill

Harry Reids office submitted a proposal for immediate release late last night in efforts to have a vote on the floor this coming Monday. As expected from his support of this week of the bill, stating merely "this is the best we can do," the bill has not changed much. ALL of the Bush Tax cuts will be extended, yes, including the top 2% for the next two years. In the Press release by Bloomberg this morning the CBO has scored the bill at a market price of $857Billion over the next ten years. It is likely that the majority of this money will be spent over the next two years, we could however see a recovery and the total addition to the deficit does not consider the positive benefits that could come. Below are the addition provisions in the bill to help out the middle class. To me it looks good, even college students are getting some relief

- Extends by two years the current tax rate for middle class families.

· Includes a $120 billion payroll tax reduction for workers.

· Extends unemployment insurance benefits for 13 months, providing a safety net that Nevadans need while they look for work.

· Extends the American Opportunity Tax Credit (college tuition), the Child Tax Credit and the Earned Income Tax Credit.

· Allows businesses to deduct 100% of certain investments in the first year.

· Extends for two years the state and local sales tax deduction.

· Extends Alternative Minimum Tax relief for two years.

If you are more into the real deal, here is the full literature on the bill.