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

[flpoljunkie]

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

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,

http://thinkprogress.org/2010/12/07/tax-priorities/

[Phx_Dem]

1. So much for the empty "he's not doing anything for middle class" meme.

He's done a ton for middle- and lower-class Americans.

[jaxx]

2. As he said:

... I am not willing to let that happen. I know there’s some people in my own party and in the other party who would rather prolong this battle, even if we can't reach a compromise. But I'm not willing to let working families across this country become collateral damage for political warfare here in Washington. And I'm not willing to let our economy slip backwards just as we're pulling ourselves out of this devastating recession.

I'm not willing to see 2 million Americans who stand to lose their unemployment insurance at the end of this month be put in a situation where they might lose their home or their car or suffer some additional economic catastrophe.

http://www.whitehouse.gov/the-press-office/2010/12/06/statement-president-tax-cuts-and-unemployment-benefits

[Dawgs]

7. This "deal" was not his only option.

He could have saved unemployment and the tax cuts. He failed because he didn't even try it any other way.

[jaxx]

10. Really? And the votes taken on Capitol hill don't matter?

I suppose that doing nothing would satisfy some, but the President knows that won't help the people.

[treestar]

13. Like what?

[Dawgs]

14. Actually call their bluff, instead of giving up first (like he always does).

Use the unspent stimulus money for unemployment. Actually make them filibuster and explain to the American people why tax cuts for the rich are important and unemployment isn't.

[treestar]

12. that is what he is "fighting" for

Good.

[Dawgs]

15. I thought he admitted he didn't fight.

Hmmm.

[bowens43]

3. keep telling yourself that.......... nt

[Clio the Leo]

5. that argument never had any merit anyway. nt

[Dawgs]

9. He's done more for the Republicans.

Unless you think caving on the public option, extending wars, giving up on gitmo, and more tax breaks for the super rich is tons of good for the middle class.

I'll give him credit for the stimulus, but he's done nothing to make things better for America's future - certainly not tons.

[Enrique]

4. they're all Obama's Components

he's pushing the whole deal.

[ProSense]

8. Then his deal

helps 3100 percent more middle-class than wealthy Americans.

[Dawgs]

6. It all depends on your definition of benefits.

This is a BIG loser in the long run.

[Still a Democrat]

11. You know how to dampen a good outrage

Good article. Bookmarked.

[Dawgs]

16. Didn't dampen mine.

:shrug: