Did President Obama Just Negotiate A Second Stimulus?

[jefferson_dem]

Did President Obama Just Negotiate A Second Stimulus?
by Benjamin Sarlin

Nothing's confirmed, but the early reported details on a possible deal on the Bush tax cuts between the White House and GOP leaders looks like the Democrats' last chance at a second stimulus package more than anything.

According to the latest from ABC, the deal would not only extend the Bush tax cuts in their entirety for two years, but also extend unemployment benefits for a year, cut payroll taxes by $120 billion over the next year, and allow businesses to deduct investments 100% for a year (an idea the White House floated earlier this year). Per the Huffington Post, there's an additional $40 billion in tax breaks for families and students thrown in as well. Combined, it all adds up to over $300 billion to help pump up the economy as President Obama heads into re-election mode. With the Recovery Act running out of steam next year and the weak jobs picture the Democrats weak point, any little bit helps both the economy and the party's 2012 chances.

Seeing as Democratic hopes of a new round of stimulus spending were next to nil going into the next Congress, this package could be a surprising achievement for the White House if they can round up the votes. The next question is whether partisans on either side will revolt over the deal -- Rep. Michele Bachmann (R-MN), who heads the Tea Party Caucus, is already slamming any deal extending unemployment benefits. And Rep. Anthony Weiner (D-NY) is also critical of a deal, publicly calling out the White House for "punting on 3rd down."

http://www.thedailybeast.com/beltway-beast/did-president-obama-just-negotiate-the-second-stimulus/

[BeyondGeography]

1. The right could be just as upset by this as the left

Wouldn't be a bad outcome.

[jefferson_dem]

3. I'm not willing to say "from lemons to lemonade" yet ...

But this is somewhat promising.

[BeyondGeography]

6. I really meant that it might be difficult to get this through Congress

Should be interesting.

[jefferson_dem]

10. Oh...

I forgot...

You're rooting for failure. :)

[BeyondGeography]

12. Yes

My fatal attraction to lost causes continues.

[gateley]

2. Hmmm. I don't know how they got away with only one year of

Unemployment benefits extension. That pisses me off. And that bitch, Bachmann -- doesn't she have anyone in her state who's on unemployment and needs this? Why do they keep voting her in?

So are we digging ourselves deeper into the deficit?

I don't know about this. Looking forward to what you guys have to say.

I don't know if I've seen people as angry about anything as they are about this giving them two more years of a tax cut. I'm not sure I've been this angry before.

[Clio the Leo]

4. Yep. nt

[Fridays Child]

5. How about hands off health care reform, too?

[housewolf]

7. In some very limited way... yes

The extensions of Unemployment Insurance, tax cuts for the middle class and tax cuts that were implemented this year.

Tax cuts for the wealthy and estate taxes... no

[catgirl]

8. I'll wait and see how this all plays out before I judge

Obama is a wise man and I trust that he is handling this the best way possible. Let's
see what we get in return. Unemployment benefits were a must, we got it.

This perspective makes a lot of sense. If the odds of getting another stimulus package
was at zilch, then this may have been a brilliant move on Obama's part. We'll see.

[polichick]

9. No - he gave away the farm and set us up for an attack on SS. nt

[Mimosa]

11. I see that too. SAD. n/t