Here is a bit from latest Reuters Breakingviews column (more on this topic to come):
OK, so for sure we seem to be talking about 2-3 year extension, including dividends and capital gains), as well as a one-year extension of unemployment insurance. Other adds on may include the doc fix, Obama’s Making Work Pay tax credit, the R&D tax credit, an estate tax around 35 percent with a$3.5- 5 million exclusion. I am still wondering if the final deal with include raising the debt ceiling. I hope not since I would rather enjoy writing about the battle over the issue in 2011.
Why is Paul Krugman being so unhelpful here:
A few months ago, the Congressional Budget Office released a report on the impact of various tax options. A two-year extension of the Bush tax cuts, it estimated, would lower the unemployment rate next year by between 0.1 and 0.3 percentage points compared with what it would be if the tax cuts were allowed to expire; the effect would be about twice as large in 2012. Those are significant numbers, but not huge — certainly not enough to justify the apocalyptic rhetoric one often hears about what will happen if the tax cuts are allowed to end on schedule.