‘Foong on Finance’ with Keat Foong: Obama’s Tax Cuts Extension Package Passes Congress

By Keat Foong, Executive Editor

The Bush tax cuts extension that Obama has very skillfully prepared for, and sheperded through, a Democratic Congress now awaits his signature.

Joined-at-the-hip to unemployment benefits extension and middle class tax cuts, a long list of measures in the bill are pretty favorable to the real estate industry.

The carried interest tax will remain at 15 percent. However, the housing industry failed to obtain an extension of the TCEP program that allows states to trade a portion of unused Low Income Housing Tax Credits for affordable housing grant dollars.

Treasury rates increased in expectation of higher budget deficits and economic growth as a result of the tax package. The 10-year Treasury yields rose to the 3 percent range for the first time since this summer.