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View Diary: Are talks between Obama and Boehner already breaking down? (194 comments)

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  •  The Times predicted (7+ / 0-)

    This over the weekend because of a common mis-understanding of what Obama is talking about regarding the expiration of the Bush tax cuts.

    Letting the marginal rates go back to 39.6 and 36 accounts for half($450 bill) of the revenue due to expiration. The other half comes from cap gains going back to 20% and dividends being taxed at ordinary income. Both those are rates Republicans would like to cut below what they are today, let alone letting them rise.

    So even in a compromise, Boehner would have to agree to some increase in marginal rates and dividends, which short of turning Medicare into a voucher is tough for Republicans to support.

    That's why the times said a deal is still a reach, even if they agreed to a 37% top rate.

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