In an attempt to justify his compromise with Republicans on extending the Bush Tax cuts, President Obama held a Press Conference which added insult to injury for millions of 99ers.
President Barack Obama vigorously defended his agreement with Republicans to extend all of the Bush-era tax cuts on Tuesday, arguing that it was a price that had to be paid to spare the middle class from crippling tax hikes.
My "number one priority is to do what's right for the American people, for Jobs and for economic growth." Obama said at a hastily scheduled White House news conference. "Because of this agreement, middle class Americans won't see their taxes go up on January 1...."
Exactly how is it good economic policy to leave millions of 99ers and their families out in the cold and exempt from any help this so called deal would provide the unemployed? A Tier 5 for 20 weeks would put back into the economy between 2.7 and 3.5 billion per week. That is sure a great deal of help for the economy Mr President and a much better return on the US investment than any stimulus to date - certainly more than tax breaks for the wealthy compared to what that is going to cost us.
The overall cost to the U.S. treasury of the controversial compromise will be between $600 billion and $800 billion over two years, according to estimates.
At the heart of the deal is an extension of the Bush-era tax cuts for two more years, which would keep income tax rates at their current levels for everyone, including the wealthiest Americans who do not need them. What is conspicuously missing from the bad deal all around is any help that should have been negotiated for millions of Americans hurting the worst: the 99ers.
The deal Obama and Republicans struck also includes a one-year cut in payroll taxes, from 6.2% to 4.2%. The tax is applied to a worker's first $106,800 of wages.
The estate tax -- currently scheduled to return in 2011 to a top rate of 55% along with a $1 million exemption -- would instead come back with a lower top rate of 35% along with a $5 million exemption.
Seems as though the Republicans got everything they wanted except permanency of the tax cuts - which most economists adamantly declare we cannot afford. In a concession to Democrats, Republicans agreed to 13 additional months to file for extended federal unemployment benefits already in place. That will not, however, affect how long someone can collect unemployment benefits the maximum will remain 99 weeks in states hardest hit by job loss.
The plan also would continue tax breaks for students and families contained in the 2009 stimulus bill and allow businesses to write off all investments they make next year.
It is not a done deal yet, however - Democrats seem to be fuming mad about this “Deal with the Devil” as Congress rumblings abound on Capitol Hill today. Many taking to the floor indicate that Democrats will not have the votes to pass the deal unless they agree to add a Tier 5 to sweeten the pot for true liberals.
I will keep you posted on the details of those rumblings as they develop. Video below of today's press conference.
