Bush tax cuts are now the Obama tax cuts

After a long and sometimes bitter fight, President Obama finally signed a massive tax-cut bill that benefits all Americans including millionaires and the jobless, but it also adds 858-billion dollars to the deficit.

KUSI's Steve Bosh has the good and bad details about this bill.

So the Bush tax cuts are now the Obama tax cuts. There are big savings for all taxpayers, more savings if you have young children or attend college, and a lot more if you're wealthy.

In signing the bill the President said the tax cuts will grow the economy, create jobs, and prevent a new year's day tax hike. “Tax rates for every American were poised to automatically increase on January 1st. If that had come to pass, the average middle-class family would have had to pay an extra $3,000 in taxes next year. That wouldn't have just been a blow to them; it would have been a blow to our economy, just as we're climbing out of a devastating recession,” said the President at a press conference Friday.

Republican leader Mitch McConnell praised the deal from the senate floor saying after two years of policies that lacked public support, the tide is beginning to turn.

Here are a few examples of how taxpayers will benefit.

  • A single parent making $50,000 a year who rents a home and pays for their kids' college tuition will save $3,200 dollars.
  • A married couple with two children, earning $100,000 a year with modest investments will save $8-200. 
  • A married couple, with a teenager and a college student, earning $170,000 with investments will save $11,200 dollars.

The tax breaks include a 2-percent cut in the payroll tax.

For tax fighters this is one where they hold their nose, and accept it.

What still concerns both parties and tax fighters, is that this compromise focused solely on the tax side, and not the spending side. But reality says the economy needs a boost, and that's why these tax cuts were extended.

So we all get a tax break over the next two years. They compromised on taxes but can they find compromise on the 14-trillion dollar deficit before the Presidential campaign season begins one year from now?

Categories: KUSI