Home > Uncategorized > Pat Garofalo – Analysis: Obama’s Components Of Tax Deal Help 150 Million More People Than GOP’s Components

Pat Garofalo – Analysis: Obama’s Components Of Tax Deal Help 150 Million More People Than GOP’s Components

From Think Progress:

Lieberman: ‘I Don’t Understand’ Why The Department Of Justice Hasn’t Charged Australian Assange With Treason

The Legacy Of Elizabeth Edwards

Today Presents Early Test Of Tea Party Strength In House GOP: Committee Chair Elections

Facing Backlash From The U.S. Chamber’s Right-Wing Ads, More Local Chambers Plan To End Their Membership

In Climate Solidarity, Palestinian Firefighters Help Israelis Fight Wildfire

Obama Agrees To Extend All Bush Tax Cuts And Cut Estate Tax In Deal With Republicans

Exclusive: Memos Reveal Anti-Muslim Group’s Early Efforts To Bring Islamophobia Into The Mainstream

TX GOP Official Opposes Jewish House Speaker: Christians ‘Are The People That Do The Best Jobs’

Weekly Standard Editor Fred Barnes Calls On Conservatives To ‘Infiltrate The Mainstream Media’

Analysis: Obama’s Components Of Tax Deal Help 150 Million More People Than GOP’s Components

By Pat Garofalo

Yesterday, the White House agreed with Congressional Republicans on a “framework” for extending the soon-to-expire Bush tax cuts. In exchange for a two-year extension of all the tax cuts — including those for households making more than $250,000 per year — the deal includes a 13 month extension of unemployment benefits, a two percent cut in the employee side of the payroll tax for one year, and a retention of the some expanded tax credits included in the 2009 Recovery Act. To get Republicans on board, Obama also agreed to a two-year cut in the estate tax.

For comparison’s sake, The Wonk Room has a chart detailing both the number of people (in millions) who benefit from each side’s priorities, as well as the total cost (in billions). Obama’s components of the tax deal (extended unemployment benefits, the payroll tax cut, and the extended credits) will cost $214 billion to aid 156 million people. The Republicans priorities (extending the Bush tax cuts for the rich and cutting the estate tax), meanwhile, will cost $133 billion, but only benefit roughly 4.8 million people.

So, in order to get desperately needed help for the long-term unemployed and to provide the middle-class with tax relief in a weak economy, Obama agreed to tax cuts for a small, wealthy portion of the population that the Republicans were willing to go to the mat for, even if it meant that everyone’s taxes went up if the Bush tax cuts expired. Excluded from this analysis is extension of the broad-based Bush tax cuts, on which everyone agreed. The total package will cost about $900 billion over the next two years, entirely financed through deficit spending.

Read more about the tax deal in today’s Progress Report, “Tough Pill To Swallow.”

Update As CAP’s Michael Linden and Michael Ettlinger noted, the various components of the tax deal (outside of the broad Bush tax cuts) will save or create about 2.2 million jobs. If, however, the GOP’s priorities were discarded in favor of further cuts in the payroll tax, that number would increase to 2.7 million, an addition of 500,000 jobs.

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: