Robert Reich: The new tax cut deal embodies the essence of Reaganomics

[Better Believe It]

The New Tax Deal: Reaganomics Redux
By Robert Reich
December 16, 2010

The new tax deal embodies the essence of Reaganomics.

It will not stimulate the economy.

A disproportionate share of the $858 billion deal will go to people in the top 1 percent who spend only a fraction of what they earn and save the rest. Their savings are sent around the world to wherever they will earn the highest return.

The only practical effect of adding $858 billion to the deficit will be to put more pressure on Democrats to reduce non-defense spending of all sorts, including Social Security and Medicare, as well as education and infrastructure.

It is nothing short of Ronald Reagan’s (and David Stockman’s) notorious “starve the beast” strategy.


Read the full article at:

http://robertreich.org/post/2337421398

[katnapped]

1. Reich needs to get with the program

And stop asking for so many ponies!

The "adults" have spoken!

:sarcasm:

[Karmadillo]

2. What does it tell us when a majority of Democrats vote the notorious "starve the beast" strategy?

nt

[harun]

6. An important question we should all be asking.

[glitch]

7. It tells us checkmate, game over.

Not that the fight is over, we just need to move to a different game.

[kenfrequed]

8. It means our side blinked

Again.

Seriously.

Fight and Communicate.

How hard could it be to do this?

[Poboy]

15. 'Blink'? Our side is in a persistent vegatative state!

[kenfrequed]

16. Well...

I'm one of those half-alive persistant comatose vegatative states, apparantly you are one of those naysaying nabobs in the half-dead persistant vegatative state people.


Seriously though, I sadly agree with you.

[Scurrilous]

3. K & R

:bounce: :bounce: :bounce: :bounce: :bounce: :bounce:

[mmonk]

4. Funny that today, I've mentioned starve the beast in two different posts.

Looks like I'm on the same wave length with Reich. I've seen all this before.

[somone]

5. "Starve The Beast" is precisely what Obama & Co. are doing

continuing the fine tradition of Reagan & Bush

[area51]

9. +1, sadly. n/t

[Lorien]

18. Insanity: doing the same thing over and over while expecting different results

America circles the drain, and this time there's a good chance that she'll be flushed.

[Still a Democrat]

10. Only 133B of 900B goes to the upper 2%

The rest isn't stimulative?

[niceypoo]

11. Bullshit

http://money.cnn.com/2010/12/16/news/economy/tax_cuts_economic_impact/">Tax cuts are the most expensive stimulus, with the weakest payoff.

By the numbers

Extending the Bush tax cuts is the costliest proposal in the measure, but returns just 10 to 40 cents on every dollar spent, the CBO said. So does granting relief from the AMT, which is the second-largest expense in the bill.

Extending the Bush tax cuts for another two years will cost $330 billion, while the AMT fix costs another $136 billion, resulting in a combined loss of $280-$420 billion.

Tax breaks for employers investing in plants or equipment returns between 20 cents and $1.00 for every dollar of lost revenue. But it is among the smallest tax proposals in the bill, costing about $21 billion over the next 20 years. And many economists question whether it'll do any good, since business are still reluctant to spend their cash.

"What businesses need are customers. They have excess capacity, so a tax incentive to invest won't likely have much impact," said John Irons, research and policy director of the Economic Policy Institute, a liberal think tank.

The tax cut with the potential to do the most for the economy is the payroll tax holiday, which will cost about $114 billion, and is estimated to be a fairly effective way to pump money into the economy, returning between 30 to 90 cents to the dollar.

But the current proposal only gives workers a break on their half of the Social Security tax. Employers pay the other half. According to CBO's analysis, giving the break to employers rather than employees would have been the more effective stimulus, returning between 40 cents and $1.20.

And economists say the estate tax break, which will cost $68 billion in lost tax revenue, has little economic impact because it mostly affects the already affluent, who are less likely to spend their tax savings.

[Lorien]

17. *Crickets* from those spinning shit

into golden propaganda.

[Name removed]

12. Deleted message

Message removed by moderator. Click here to review the message board rules.

[madrchsod]

13. sure is...but that`s ok ,obama is a democrat

[Poboy]

14. Obama considers Reagan his personal hero, so no suprise.

[Better Believe It]

19. Photos of President Obama and friends at the tax cut signing

Wonderful. Just look at what bi-partisanship collaboration with Republican ass-holes can accomplish. Huge tax cuts for the rich and a dagger aimed at the heart of Social Security!

[WillyT]

20. HUGE K & R !!!

:kick:

[Overseas]

21. Sad K&R. //nt