Here's more from ThinkProgress:
The White House just announced that it has settled on the details of the deal it’s been cooking up with Congressional Republicans over the coming expiration of the Bush tax cuts. In return for a two-year extension of all the Bush tax cuts — including those for the richest two percent of Americans and those on capital gains and dividends — currently expired unemployment benefits will be extended for 13 months, there will be a two percent reduction in payroll taxes for one year, and both the expanded Earned Income Tax Credit and Child Tax Credit enacted in the 2009 Recovery Act will be retained.
The deal also includes reinstating the currently expired estate tax in a way proposed by Sens. Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) — 35 percent with a $5 million exemption (which means that $5 million can be passed on tax free). President Obama had proposed permanently setting the estate tax at the 2009 level of 45 percent with a $3.5 million exemption. Under current law, the estate tax comes back next year at a 55 percent rate with a $1 million exemption.
“I’m not willing to let working families across this country become collateral damage for political warfare here in Washington,” Obama said in a statement. “Sympathetic as I am to those who prefer a fight over compromise, as much as the political wisdom may dictate fighting over solving problems, it would be the wrong thing to do.”