Monday, December 6, 2010

Proof is in the Christmas Pudding

President Obama announced the parameters of his "deal" with Republicans to extending the Bush era tax cuts, acknowledging that he still strongly opposes the extension of cuts for the very wealthy, but that letting that get in the way of cuts for the middle class would be wrong.

"As much as the political wisdom may dictate fighting over solving problems, it would be the wrong thing to do," to delay resolution until the next year, Obama said.

The "deal" includes...

-2-year extension of Bush-era tax rates all - including the wealthy
-13-month extension of unemployment insurance
-2 percentage point decrease in the payroll tax for one year.

As a FYI  The cost overall in lost government revenue is at least $450 billion in 2011 (which is a bit higher loss than the same type of stimulus package from 2009).

Of course Pelosi went on record to say that she was not in agreement with the president, and Reid, with furrowed brow reveled that he would be in attendance when this is discussed on the morrow. 

Democratic sources say many lefty lawmakers object to a new provision on the estate taxes also included.   On inheritances greater than $5 million dollars, the rate would be 35 percent, so those who have ailing rich grandparents may wish to speed them up a bit as inheritances will be less in the new year.

1 comment:

  1. I don't think you can honestly talk about a cost of the Bush tax cuts Obama extended. Rather, I bet these tax cuts increase revenue to the government. This is because there are many examples like Reagan, who sharply reduced tax and revenue to the government doubled.