Here are some of the highlights of the tax agreement said to be reached between McConnell and Biden today:

• Income tax: permanent extension of tax rates for  individuals earning below $400,000, and for couples filing jointly below  $450,000. Above that, income taxes to rise to 39.6%, up from the  current 35%

• Capital gains and dividends: permanent 15% tax  rate for individuals earning below $400,000 or households below  $450,000, and a 20% tax rate for those earning more than $400,000 or  $450,000.

• Social Security payroll "holiday": two percentage point cut in the payroll tax lapses, increasing the payroll tax to 6.2%.

• Personal exemptions and itemised tax deductions:  Personal Exemption Phaseout (PEP) and Pease limitation to be permanently  enacted on individuals earning more than $250,000 or households earning  more than $300,000.

• Unemployment benefits: extends benefits for the long-term unemployed for one year.

• Estate tax: permanent change to a 40% tax rate on  estates valued above $5m and family estates of $10m, an increase from  the current rate of 35%

• Alternative minimum tax: permanently fixes and  indexes the AMT for inflation, to prevent middle and upper-middle income  taxpayers from incurring higher tax bills.

• Tax credits: extends for five years the child tax  credit, earned income tax credit, and an up to $2,500 tax credit for  college tuition. Extends for one year accelerated "bonus" depreciation  of business investments in new property and equipment.

• Medicare payments: stops a 27% cut in Medicare payments to doctors for one year dating back to 1997.