It is now official…..we will take the Bush tax cuts in place and yes the wealthy will get wealthier thanx to our president and the Congress…..you have heard all the scuttle-butt…..about the jobs or about the need or about…well whatever the kings of power want you to hear…..but as usual there is more to the story than some would like you to know…..
For instance, the GOP has been yelling about the run away spending of the Obama administration….how he is some sort of drunken sailor when it comes to the government…..and the soon to be speaker of the House called the taxation of the rich as some sort of pile of “chicken crap” (pretty good summation from a real statesman) (sarcasm, BTW)…..
But with all the speeches and all the promises and all the crap….what will it cost to continue the Bush tax cuts……thanx to CNNMoney for the breakdown…..
Unemployment benefits: $57 billion. The package would also leave in place for 13 months the option to file for extended federal unemployment benefits — which go as high as 99 weeks in states hit hardest by job loss. The Congressional Budget Office recently estimated that a year-long extension would cost $57 billion.
Social Security tax break: $120 billion. The package would also offer workers a 2% payroll tax holiday next year, so that instead of paying 6.2% on their first $106,800 of wages, they will only have to pay 4.2%. The White House estimates the measure would cost $120 billion.
Individual tax credits: $40 billion. The compromise framework would also extend for two years the increased value of a number of tax credits that benefit low- and middle-income tax filers, such as the earned income tax credit, the child credit and a revamped tax credit for college costs. The measure would cost $40 billion, the administration said.
Business tax breaks: Cost unclear. It is still not clear how many business tax breaks are in the package. Some, like an extension of the research and development credit, has drawn bipartisan support and is typically renewed annually. But also included is a new temporary option for businesses to write off 100% of their expenses in 2011. A cost estimate was not immediately available.
Estate tax: $88 billion. The compromise framework also includes a lower estate tax, which barring any changes would return in 2011 with a $1 million exemption level and a top rate of 55%. Instead, under the proposal, the exemption level would be raised to $5 million and the top rate lowered to 35%. The administration said it didn’t have a cost estimate yet, but a review of an estate tax proposal with similar parameters by the Tax Policy Center suggests the cost could be roughly $88 billion over 2 years.
Yep…sports fans they will be expensive! But I thought we were on this kick of deficit reduction….is that not what the last election showed all the analysts?
The one part that I am suspicious of is the part about the social security payroll taxes decreased by 2%…yes it will give people a bit more money in their pockets…..but it will decrease the amount of money in the fund…..which will make it weaker and will help it go bust sooner….the GOP will most likely get their way on some of their moronic SS proposals…..
This is a win-win for the GOP…..not only do their base, the rich, get lots of cash to play with…but they also will weaken an already weakened SS fund….which will mean that something may have to be done sooner than later….and that is their plan and their desire…..I can hear the yells for cuts in entitlements as I type…..
And one last thing…thgis is now Obama’s tax cuts, no longer will it be laid at the feet of Bush……anything that goes wrong will be the sole possession of Obama and the Dems….makes for a great election season…..
To my friends on the Right…..do you recall all the whining, screaming and crying about a government take over? This bill had NO committee, had NO CBO score and NO real debate and yet it has become law….now you may start screaming about the government takeover that you were so worried about in the recent past……(insert sound of a cricket here)……
