Tuesday, December 07, 2010


Sometimes I wonder if the Democratic Party actually has a plan. These tax relief negotiations are something that should have happened BEFORE the midterms, especially the vote. The Left would have been in a position of strength, whereby they could DARE the Republicans to vote against Tax Cuts for all before the midterms. This would have saved their house majority. But they didn't, and now they are backed into a corner.

The new vote on the Framework gives the Right a second chance, and now puts the 'double dare ya' on the Democrats, instead. How much are we spending now . . . estimates are between 600 and 800 BILLION. The deal:


- Bush tax cuts: $458 billion. The package would extend the Bush tax cuts for everyone for two years

- Unemployment benefits: $57 billion. The package would also leave in place for 13 months the option to file for extended federal unemployment benefits

- Social Security tax break: $120 billion. The package would also offer workers a 2% payroll tax holiday next year

- Individual tax credits: $40 billion. extend for two years the increased value of a number of tax credits that benefit low- and middle-income tax filers,

- Business tax breaks: Cost unclear. It is still not clear how many business tax breaks are in the package. Some, like an extension of the research and development credit, has drawn bipartisan support and is typically renewed annually. But also included is a new temporary option for businesses to write off 100% of their expenses in 2011. A cost estimate was not immediately available.

- Estate tax: $88 billion. exemption level would be raised to $5 million and the top rate lowered to 35%.
Another deficit killer. Everyone wants to give away money, but no one wants to make the tough budget cutting decisions that need to happen. And I mean meaningful cuts, not Freezing salaries and chopping apart Earmarks, feel good actions that are pennies to the budget.

GOP, come back to me when you have meaningful tax cuts, like a 20% cut in defense!! Dems, let me know when you are willing to do the same in Health and Human services, or even Education.

Isn't there at least some group of true fiscal conservatives who have the guts to do what is needed, regardless of personal electoral peril?

I doubt it!!


No comments: