Mitch McConnell and Joe Biden continue to negotiate, with Biden having taken Harry Reid’s place for the Dems.
They have agreed on raising federal income taxes for individuals who make more than $400,000 and families who make more than $450,000. They have agreed on a permanent fix to the alternative minimum tax, which has been getting annual fixes to keep it from hitting middle class families.
It looks as if the estate tax will rise to 40% from 35% for estates worth $5 million or more.
Unemployment benefits will be extended for a year for about two million Americans who otherwise would lose them starting tomorrow. The Medicare “doc fix” will be extended for a year, so that doctors accepting Medicare patients don’t see their payments reduced.
They are still negotiating about turning off the sequester to avoid the automatic spending cuts that will begin tomorrow.