New Tax Law Signed

An omnibus tax law that extends the Bush tax cuts for all for the next two years, and also extends host of other tax breaks was signed by President Obama today. The law also continued the extended unemployment benefits currently in place for another thirteen months. Usually, unemployment benefits at end after six months of benefits. Under the extended law, they end after two years of benefits (or less, depending on the local unemployment rate in a state).

From a public finance perspective, it is profligate, continuing to drive up budget deficits to record high levels. But, it does provide some ability to know what tax treatment will apply to events happening in 2011 and 2012, just two weeks before those tax years begin.