Extension of the Bush Tax Cuts

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On December 6th, President Obama announced a tentative deal with congressional Republicans to extend the 2001 and 2003 tax cuts (the “Bush Tax Cuts”). On December 9th, legislation was introduced titled Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, with the goal of providing the following relief for American Taxpayers:

Extend the Bush Tax Cuts for 2011 and 2012 for all taxpayers; reduce the employee share of Social Security (“FICA”) taxes from 6.2% to 4.2% for 2011; allow for 100% expensing for bonus depreciation investments through 2011; provide an estate, gift and generation-skipping transfer tax rate of 35% and exemption amount of $5 million for 2 years; extend the alternative minimum tax (“AMT”) relief (the “AMT Patch”) for two years; extend various expiring tax provisions; and extend unemployment benefits for 13 months.

The final details are subject to negotiation and may change as the proposed legislation makes its way through the House and the Senate. At this point, the proposed legislation does not include significant revenue raising offset provisions.

Please see full article below for more information.

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Published In: Elections & Politics Updates, Labor & Employment Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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