The White House has posted its summary of the agreement the President and Republicans worked out on the pressing tax issues of the day, “Fact Sheet on the Framework Agreement on Middle Class Tax Cuts and Unemployment Insurance.”

There are several items that have been high on the priority list for the National Association of Manufacturers, including the full extension of the 2001 and 2003 tax rates for two years, the R&D tax credit, and full business expensing for one year. From the section, “Business Tax Cuts to Increase Investment and Growth”:

In September, the President called for temporarily allowing businesses to expense all of their investments in 2011. This growth-oriented tax cut was included in the framework agreement.

  • According to the Treasury Department, complete expensing could generate more than $50 billion in additional investment in the U.S. in 2011.
  • The provision will provide a crucial incentive to 2 million businesses to invest and create jobs in the U.S and would be the largest temporary investment incentive in American history.
  • The framework agreement also includes a 2-year extension of the R&D tax credit and other tax incentives to support business expansion.

The White House does not mention the agreement to set the estate tax rate at 35 percent with a $5 million exemption for the next two years, adopting the language from Sen. Jon Kyl (R-AZ) and Sen. Blanche Lincoln (D-AR). Short of complete repeal, the NAM had supported that level as a realistic compromise.

The majority of Republican and conservative commentators we pay attention to seemed pleased. Democrats and the left appear dyspeptic. Round-up of coverage in the extended entry below …

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