Obama rolling over for a Republican belly rub, sorry kids: Obama Near Deal to Extend All Bush Tax Cuts

CNBC and Reuters
12/6/10

President Obama is expected to announce shortly that he is close to a deal with congressional leaders to extend all the Bush-era tax cuts for two years, NBC News reported.

The deal is said to be "all but done," a source told NBC.

The broad outlines of the the agreement call for:

• Two-year extension of all Bush tax cuts
• A 13-month extension of unemployment benefits
• A two percentage point cut in the payroll tax for one year.
• 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. Link to the Obama rollover belly rub