Tax Cut Negotiations: What’s in a Deal?

By Gregory

Dec 6, 2010 2:57pm

ABC News' Jonathan Karl reports: Even as the Democratic proposals to extend the middle class tax cuts went down in the Senate over the weekend, there have been intensifying negotiations between the White House and Republican leaders on a compromise plan that could emerge by mid-week.  Under the deal: – Tax cuts would be extended for everybody — including the wealthiest taxpayers — for at least two years. – Unemployment insurance for the long-term unemployed would be extended for at least one year. The White House is still pushing for an extension of the so-called "Making Work Pay" tax credit, a stimulus program that gave $400 a year to individuals (and $800 to households) with incomes under $75,000.  But extending this tax credit would cost $60 billion for one year and it is unclear if Republicans will go along with it. To work out this deal, Republican Senate leader Mitch McConnell has had multiple discussions directly with the President and the Vice President.  As McConnell said on "Meet The Press," he's had more conversations with President Obama over the last two weeks than he had over the last two years.  Over the last few days, Democrats have largely been left out of these talks. All that has Democrats uneasy and some are privately threatening to vote against this deal when it is finally done.   

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