Looks like President and Republican are all determined to settle the income tax issues. Reuters and a number of other media outlets reporting the President is confident there will be a deal reached within a couple of days.
Likely swap: two year extension of all income tax cuts for all to make Republicans happy in exchange for one year extension of unemployment benefits to make the President happy. Question now is whether estate tax fix and other tax issues, such as extenders, AMT fix, Make Work Pay and other tax issues will be part of settlement. Likely estate tax fix will be part of the deal
But you never know. The estate tax is not being mentioned in the main articles on the impending deal. ( For example, see Andrew Bolton’s article at the Hill. Also, there is a Wall Street Journal blog post talking about how the issue is not important to the President and the Congressional Democrats.) Hence, as I have warned, it may get lost in the shuffle. Also, there is a slight possibility no deal will be reached at all..
We shall see.
By Kevin Staker