A Win for Our Economy, Jobs and Working Families

Staff reports

The White House has distributed a fact sheet on the “Framework Agreement on Tax Cuts and Unemployment Insurance” that it has negotiated with the Republican leadership in Congress. At this time, no legislation has been introduced in either house of Congress, so it is impossible to know whether both houses will pass legislation.

According to the Obama Administration, the agreement “secures vital tax relief and investments in our workers that will create jobs and accelerate economic growth.”

The plan has three key accomplishments:
•    Working families will not see their taxes go up. 
•    Focused on high impact job creation measures. 
•    Does not worsen the medium- and long-term deficit. 

The potential deal includes a mutually agreed upon solution to
the impasse over taxes by extending the 2001/2003 income tax rates for
two years. 

In addition to the 2001/2003 rates, the Administration secured
several provisions that are vital for our economy’s growth, and which
would not have been possible without this potential deal:
•    $56 billion in unemployment insurance;
•    a $120 billion payroll tax cut for working families;
•    about $40 billion in tax cuts for our hardest hit families and students;
•    100% expensing for businesses next year.