Obama’s tax cuts

This week Obama stuck a deal with Republicans which sees him try to revive the US economy with tax cuts instead of extra spending. Labour in NZ should take note. Obama has agreed to:

• Extend the Bush tax cuts for two further years which were due to expire at the end of 2010
• Reduce for one year the Social Security payroll tax from 6.2% to 4.2%
• Increase the threshold for the death tax from $1m to $5m ad reduce the rate from 55% to 35%

It will be interesting to observe the President’s poll ratings in the next month.