opinion squarely against the super-rich

according to the Tax Policy Center, and those people tend to be Republicans anyway. So few Democratic votes

would be at stake. And Republicans themselves have been bellyaching about how important it is to start attacking the debt. Republicans counter by arguing that enacting

any tax increase in a weak economy is dangerous, because it could crimp spending just when it's needed most. There's truth to that, but the majority of evidence

suggests that tax increases on the wealthy would cut into what they save, not what they spend. The media will treat this whole issue as a huge drama, but the fact that

a Democratic Congress would have to pass a new law to prevent higher taxes on the wealthy weighs heavily in favor of a tax increase. Call your accountant.

The middle class will get a temporary pass, but it will only defer the inevitable pain. Obama has pledged no new taxes on the middle class, and no matter how

implausible that is, it's hard to see him breaking that promise in his first term. Besides, raising the income tax rates on the majority of taxpayers would be risky in

a lousy economy, so the odds are high that Congress will extend the Bush tax cuts for those who fall below the $200,000/$250,000 thresholds. The Senate, which moves

slower than the House, may not get to that before the November elections, so the action may come in the lame-duck session that follows, leading to plenty of high-volume

gamesmanship right up until the elections. But not much will change for the majority of taxpayers.

The respite, however, will be short-lived. One reasonable guess is that the Bush cuts will be extended by only two years, forcing Washington to deal with them again in

2012—when the economy, presumably, will be stronger. At that point or soon after, Congress will have to get serious about new taxes—and there aren't nearly enough

wealthy Americans to finance a solution, at any tax rate. "We've been selling government services at 80 to 90 percent of their cost," says Clint Stretch, managing

principal for tax policy at Deloitte Tax. "We're going to have to start selling them at a premium to pay for the discounts in the past."

Possibilities include not just higher tax rates on those who already pay, but a host of scaled-back deductions—including the mortgage-interest deduction for home

purchases—and a new value-added tax that could raise the cost of most goods and services. Exemptions for lower-income workers could be narrowed as well, so more people

pay taxes. The tumult will be fascinating, since voters are likely to revolt no matter how bankrupt American becomes or what is fiscally prudent. But for now,

politicians are looking the other way.

The "making work pay" credit has a good chance of being extended for one more year, through 2011. This was part of the 2009 stimulus plan that reduced the tax burden

for individuals by $400 and for couples by $800, up to income thresholds of $95,000 and $195,000. It was initially put into effect for 2009 and 2010; Obama wants to

extend it through 2011, and he'll probably get his wish. The tax credit benefits about three-quarters of all taxpayers, and can plausibly be counted as additional

"stimulus" that will help the economy recover. So it has popular appeal despite an estimated cost of about $60 billion in lost government revenue for each year it's in

effect. It wouldn't be surprising if Obama pushed to extend this into 2012 as well, to claim credit for middle-class tax cuts in an election year.

Estate taxes have nowhere to go but up, especially since they were cut to nothing at all for 2010. There are two basic issues: What the tax rate should be, and what

portion of an estate should be exempt from taxes before the government takes its share. Most proposals are coalescing around an exemption of between $3.5 million and $5

million, and tax rates that range from 35 to 50 percent after that. Conservatives loathe the "death" tax, complaining that it's a second levy on money's that already

been taxed once. Classic Cardy Boots UGG Boots Classic Mini UGG Boots UGG Classic Cardy Boots Ugg Classic Argyle Knit Boots But unbeknownst to them, lean times have turned public opinion squarely against the super-rich, who are the only ones really affected by estate taxes.

After the 2010 holiday, a reinstatement seems inevitable.