‘a second stimulus’

NYT: The apparent deal over the Bush tax cuts highlights why the Democrats probably had to accept the extension of all the Bush tax cuts. No politician is likely to use this word — at least no Democratic politician — but the deal amounts to a second stimulus bill.

…. Democrats and Republicans agree to extend all the tax cuts and also agree to an extension of unemployment benefits, a cut in the payroll tax and, according to my colleagues, “continuation of a college-tuition tax credit for some families, an expansion of the earned income tax credit and a provision to allow businesses to write off the cost of certain equipment purchases.” The amount of money pumped into the ailing economy: about $900 billion.

Subtract the $400 billion cost of the Bush tax cuts. Subtract another $140 billion or so, which is the cost of extending the Alternative Minimum Tax patch …. you’re then left with more than $300 billion in net stimulus over two years. And while that sum will not be enough to fix the economy all by itself, it is serious money…

…. none of this is meant to wave away the failure by Mr. Obama and other Democratic leaders to take action on the Bush tax cuts earlier. The Democrats did not need to be in this position. But the outcome is not all bad, especially for the short-term sake of the economy.

Full article here

5 Responses to “‘a second stimulus’”

  1. December 7, 2010 at 9:21 am

    Now it’s time to play hardball. If I was Harry Reid. I would hold the Millionaire tax cuts hostage until AFTER the Senate vote on the Start Treaty, the Budget, DADT, and the Dream Act. They must all pass before this tax cut bill come to the floor. Period.

    All of these bills could of passed the Senate months ago. So if the Republicans still want to hold up progress delivering for the American people, they get the blame for the tax rates expiring.

    President Obama made the deal he could get for the American people. It’s up to the House and Senate now.

    • 2 CR
      December 7, 2010 at 10:02 am

      Thank you Brezzydee

    • 3 Kelly
      December 7, 2010 at 11:01 am

      I don’t think I fully agree with this. I certainly want those things passed but I do not have the luxury to withstand a tax hike and cannot afford to pay a penny more in taxes. I have a small business, a big mortgage, car note, school loans, car insurance, home owners insurance, hoa dues, etc. Isn’t there only several more weeks before the tax cuts runs out or am I missing something.

  2. 4 Sue in Minnesota
    December 7, 2010 at 10:17 am

    Someone, more politically astute than me, please explain the reference to tthe failure of the President and the Democrats to get this done earlier. Is the argument being made that they should have forced this vote prior to the mid term elections? I’ld like to better understand the reasoning behind this statement.
    Also when the Republicans control the House will the media hold them accountable to the degree they have held the Democrats responsible over these past two years? I’ld like to see public pressure exerted on the Republicans in equal measure…….seems to me Republican obstruction is our biggest impediment to progress.

    • 5 Kelly
      December 7, 2010 at 10:53 am

      It’s just a notion used by MSM and the usual suspects to again lay blame on the administration. Revisionist history in it’s fullest. They conveniently forget, hcr fight, oil spill drama, unemployment insurance and all the other unnecessary progress blocking the Repubs did during the less than two years of our President in power.

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