Last night, shortly after my short cell post, President Obama made a public announcement that a “Framework” (still more to be hammered out) for the extension of tax cuts had been reached.
Here are a few of the highlights:
- Estate Tax to begin at $5 Million level at a 35% rate
- Extension of the lowered Capital Gain rate of 15%
- Unemployment benefits for long termed unemployed extended for another 13 months
- Payroll tax reduction for small business owners and accelerated tax write-offs for business investments
- Continuation of current tax brackets for all income levels
While this “Framework” appears to be for the next two years only, the announcement sheds much clarity on the uncertainty in many areas, especially regarding estate taxes.
The debate of future debt, the Feds role, and economic stability will rage today and in the days to come, however, market participants will most certainly breathe a sigh of relief for the clarity, if for no other reason.
Have a Good Day!