As was floated around yesterday on the Sunday news shows, President Obama plans to propose a one-year extension of the “Bush tax cuts” for families making $250,000 or less. Presumably, the extension would apply to up to $125,000 for married-filing-separate and something in-between for singles and heads of household.
My first blush reaction is that this is the Administration digging in for an election-year position, and that the proposal as-is doesn’t stand a serious chance at passage. Republicans will be pushing for a longer-term extension of the entire tax bracket, while Congressional Democrats are more in favor of an extension at $1,000,000 or less. At least it’s a starting point for discussions.