BENEFITS OF THE LOUSY TAX DEAL

CENTER FOR AMERICAN PROGRESS reports their analysis of the tax deal President Obama struck with Republicans.  CHECK-IT-OUT here.

“Our analysis of the framework tax agreement that President Barack Obama announced yesterday, including additional tax cuts and an extension of unemployment insurance, finds that 2.2 million jobs will be the end result. In this time of economic distress, millions of new jobs are, of course, very welcome. It is, however, unfortunate that these jobs have to come from an agreement that is a balance between large, unneeded, bonus tax breaks for the wealthiest Americans and the needed continuation of unemployment benefits, middle-class tax relief, and additional help for the economy for the rest of us.”  Bolding is ours. 

Here’s a chart that contrasts both the number of people (in millions) who benefit from the President’s priorities vs. the Republican’s, AND the total cost (in billions). The components of Obama’s tax deal (extended unemployment benefits, the payroll tax cut, and the extended credits) will cost $214 billion to aid 156 million people. The Republican’s priorities (extending the Bush tax cuts for the rich and cutting the estate tax) will cost $133 billion, but only benefit roughly 4.8 million people.

HERE’S YOUR VISUAL! 

We don’t like the bonus tax breaks for the wealthy, but Progressives should stop ranting and realize that the President did NOT have the votes to pass the tax-cut package he really wanted to pass.  Now, maybe we can blame him partially for the fact that there are fewer Dems in the Senate — but that’s another argument for another day.

The President made the best possible deal he could, at this time in the history of his presidency.  He made the best decision he could to keep the modest economic growth going.  PERIOD.