30 October 2010 – The Obama administration is busy at work trying to figure out what to do with the Bush tax cuts that expire in December for all income brackets. There is a fear that Congress will not give their approval to reinstate higher taxes on the nation’s wealthiest families if the Republicans regain House majority in the upcoming election next Tuesday.
Obama administrators are intent on restructuring the Bush tax cuts. The new plan would make the tax breaks for families earning less than $250 thousand a year permanent. Family income above that level would have a temporary break for one or two more years. The new plan would delay an immediate decision on the matter of tax breaks for the wealthy.
Republican leaders are set on extending the Bush tax cuts for all income brackets. President Obama insists that the U.S. cannot afford continued tax breaks on the highest income tax brackets.
Republicans want a permanent extension of tax breaks across all income brackets. However, a proposed plan involving a two-year extension would be accepted. White House officials did not comment on a compromise over tax breaks for highest income earners in exchange for Republican approval of a second stimulus.