Posted on 12/14/2010 10:14:23 AM PST by ssugasl231
1 The "cost" of the bill is $857 billion...over 10 years = $85 billion/year
2 $85 billion/year is 2% of spending (proposed to be $3830 billion this year)
3 $721 billion out of $857 billion, or 84% of the bill, are keeping the tax cuts. Is this really "spending" to keep our own $?
4 Extending the estate tax "costs" $68 billion over 10 years, or $6.8 billion/year. That is 0.1% of spending this year.
5 Extending unemployment insurance costs $56 billion over 10 years, or $5.6 billion/year.
6 The payroll tax holiday costs $111 billion over 10 years, or $11 billion/year.
7 Extending the renewable energy provisions, which are mostly tax credits and not spending, such as for bio-diesel and energy-efficient appliances, costs $52 billion over 10 years or $5.2 billion/year.
8 In terms of percentages: 84% of the cost of the bill is extending tax cuts or tax credits; 9% is increased spending due to tax cuts (interest on the debt?), and 7% is extending unemployment insurance.
Given the percentages above, do you think it's in the GOP's or the country's best interest to reject this tax deal?
The GOP, if they had spine and guts, would reject this lard designed to destroy our economy even more.
Hey GOP, bend over, you earned it all by yourselves. So much for love of country first.
#3 is not a cost. Where is the added spending they have included for “green” initiatives? Truth is, no one knows what is in it now.
If the goal is to bankrupt the nation quickly, then this is a great deal
#3 is not a cost. Where is the added spending they have included for “green” initiatives? Truth is, no one knows what is in it now.
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Not sure, but I think that’s #7(?)
#3 is not a cost. Where is the added spending they have included for “green” initiatives? Truth is, no one knows what is in it now.”
Not only do we not know what is in THIS bill, we don’t know what was traded for votes in successive bills (and their costs) to get this one through. The real cost is always hidden with pork projects ... the trading for votes now in exchange for legislation passed later.
Democrats have been repudiated at the polls for arrogance in going against the will of Americans by passing healthcare and other bills which majority of Americans opposed.
69% of the American public supports the tax deal and you want Republicans coming into office to display the same arrogance by ignoring the will of the American people.
Bad idea.
Of course, the resulting additional revenue that is yielded from tax rate reductions (or the decrease in revenue from increasing tax rates) is never taken into consideration when calculating the “cost” of any tax policy.
A two year extension of the existing tax rates sounds nice on the surface but is probably too short a period to entice businesses and individuals to make any fundamental changes in their investment and spending decisions - which is what we need if we want to start chipping away at the current unemployment rate.
How can you have a cost over 10 years when the bill only extends the tax cuts for 2 years?
I am so confused about unemployment insurance. Can somebody explain it to me?
I thought business owners paid a premium to the states to provide a max 26-week unemployment insurance policy to employees. Isn't this a state program? And, if this part of the compensation is run like a true insurance program, presumably there was a pot of money accruing to be paid out on a rainy day. So, if a state is really hurting, employment-wise, what prevents a state from adding a temporary, beyond-26-week, supplemental policy, and structuring the cost appropriately? Why did this become a federal matter and is it being paid for with insurance premiums from employers ... or is it welfare, not insurance at all? And if it is essentially welfare, is there any reason not to make this a loan program rather than a welfare program, so that, in the end, it is at least cost neutral?
“3 $721 billion out of $857 billion”
The compromise avoids a TAX HIKE of $721 billion.
The only tax cut is a small cut in the social security/payroll tax.
If anyone claims a tax cut by pretending an alternate future is existential reality, then they must calculate that if unemployment comp is not extended 1/3 of the unemployed would find jobs and pay 100% of their income and payroll taxes. That would far exceed the cost of the extension and “pay for itself”.
yes... How can you calculate a cost over 10 years of a 1 year extension of the Unemployment Insurance and Payroll Tax deduction..
This kind of math doesn’t make sense to me..
ALL of the numbers are nothing but LIES because NOTHING is being done PERMANENTLY. There are no income tax cuts and the extension of current rates is only for TWO YEARS, the unemployment bill is only temporary, the SS tax cut is for only ONE YEAR. And they ARE NOT extending the estate tax!
Obastard knows this (he even said so) and is counting on it so he can say that he tried "tax cuts" and it failed to do anything for the economy.
ssugas1231: “8 In terms of percentages: 84% of the cost of the bill is extending tax cuts or tax credits...” This is a classic liberal argument - how much it’s going to cost the country if we DON’T raise taxes! Hogwash. What about calculating the costs to the American people of raising taxes in the middle of a near depression - more jobs lost so more unemployment insurance needed, more government programs like welfare and Obamacare, etc...? In addition, you’re assuming those tax revenues will just keep flowing in the midst of this ongoing downturn; that’s just a bad assumption. And you remember what they say about assumptions, right...? I’m not a fan of the bill as the Democrats have laden it with pork spending and other add-ons, but please...give us a break re: the costs of NOT raising our taxes!
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How much pork is in the bill, in terms of $.
The article is from a conservative site, and I’m a conservative. It’s just calculating the % of how the bill is made up, and most of it (84%) is preserving the current tax cuts/credits.
Democrats have been repudiated at the polls for arrogance in going against the will of Americans by passing healthcare and other bills which majority of Americans opposed.
69% of the American public supports the tax deal and you want Republicans coming into office to display the same arrogance by ignoring the will of the American people.
Bad idea.
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Good point.
It says right here in the article:
“3 $721 billion out of $857 billion, or 84% of the bill, are keeping the tax cuts. Is this really “spending” to keep our own $? “
Clearly they aren’t cuts, they are just preserving the existing rates. I think the article makes that clear.
yes... How can you calculate a cost over 10 years of a 1 year extension of the Unemployment Insurance and Payroll Tax deduction..
This kind of math doesn’t make sense to me..
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That’s how the CBO does estimates. Some of the effect of the bill is > 2 years.
Here’s the original source:
http://cbo.gov/ftpdocs/120xx/doc12020/sa4753.pdf
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