There's really 3 possibilities here: they expire, they are extended for everyone, or they are extended for those below some income level. Seems the R's want (b), and the Dems want (c). Thus, (a) seems like a good bet. barfo
Taking any capital gains before Jan 1st. Restructuring compensation structures to try to avoid taxation. Deferring R&M on properties to reduce net income in future years. Pretty boring stuff, but it just shows that the behavior of businesses and individuals will change according to tax policy. Therefore, with a higher tax rate, you're likely to get lower tax revenue. Art Laffer wasn't wrong.
It's a good question. Obama seems completely resilient to criticism. He's going to do what he's going to do regardless of how popular or unpopular it may be. And since Pelosi is a 100% safe bet to win her seat every election, she walks in lock step with Obama (or he with her- sometimes it's hard to tell). Both want and need the increased taxes badly due to how far they increased the national debt. Therefore, I think they will simply let the Bush tax cuts expire quietly. The political damage will be minimal for Pelosi, but could haunt Obama.
Hmm, looks like they will be extended for EVERYONE in the short term, looks like in August this didnt look so viable, good to see a deal struck