Why didn't the Dems let the tax cuts expire and then introduce a new tax cut bill?

[XT]

@DMC

You have a cite for that? I’m pretty sure that extending the unemployment benefits for a year costs about the same amount of money we’d get by simply letting just the $250K+ cuts expire, and is much smaller than what we’d take in if we let them all sunset.

Sorry, been out of town. I’ve seen estimates ranging from $100 billion to extend unemployment up to several hundred billion. This cite (just a quick google and haven’t read through it) claims it would cost $100 billion to extend through next year.

According to AP, the costs of another push to have unemployment benefits extended will reach $100 billion dollars. The estimated cost includes the costs of extending unemployment benefits through 2010 for those who have been unemployed for more than six months as well as costs to provide subsidies to assist in paying health insurance premiums.

From everything I’ve read, we are looking at something in the ball park of $70 billion (maybe…I’m getting this number from Obama claiming that the expiring the tax cuts on $250k+ incomes would bring in $700 billion over 10 years. No idea how true that is) from allowing the tax cuts to expire on just ‘the rich’…so, you are talking about a difference of billions if not tens of billions.

@Damuri Ajashi

You kbnow there were TWO votes to extend tax cuts for those making under $250K and for those making under $1 million and the Republicans voted them bgoth down. Why would you blame the Democrats for the failure of those making under $1 million from getting an extension of their tax cuts?

That’s not what I was saying there.

-XT

[DMC]

@xtisme

Sorry, been out of town. I’ve seen estimates ranging from $100 billion to extend unemployment up to several hundred billion. This cite (just a quick google and haven’t read through it) claims it would cost $100 billion to extend through next year.

That was last year’s extension, and I’m not sure $100 billion dwarfs the yearly revenue of $70 billion.

All of the estimates I’ve seen are in the $65 billion range for this extension, which most certainly doesn’t dwarf $70 billion.

[The_Second_Stone]

I’m still pretty angry about the latest caving. Obama ain’t Kenyan, he’s French.

That said, maybe he thought it was necessary and a better deal than he could get later down the road.

Robert Reich and Paul Krugman seem to think that it would be okay to just let the cuts expire. I haven’t worked out the numbers, but I agree with that. This deal really punishes the poor.

[MilTan]

@The_Second_Stone

I’m still pretty angry about the latest caving. Obama ain’t Kenyan, he’s French.

That said, maybe he thought it was necessary and a better deal than he could get later down the road.

I think this is true.

Robert Reich and Paul Krugman seem to think that it would be okay to just let the cuts expire. I haven’t worked out the numbers, but I agree with that.

This might be true economically, but it is less likely to be true politically[sup]*[/sup]. Nevertheless, I am provisionally in agreement with everything you’ve said up until this point.

This deal really punishes the poor.

And here is where I get off the train. How does this deal punish the poor? Please explain in terms of a plausible baseline for comparison, not a fantastical one where Obama convinced the Republicans to go along with extending unemployment insurance and the making work pay credit without getting anything in return.

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[sup]*[/sup] By which I mean if it isn’t true economically, it definitely isn’t true politically, as a bad economy will sink the Democrats’ and Obama’s chances in 2012. And even if it is true economically, it may not be true politically, because people don’t like it when their taxes go up.

[gonzomax]

Unemployment benefits have a direct and positive impact on employment and the economy. It also creates a false impression that we care about those who are hurting in America. The posters on this board make it clear how few really do.
We will have to grow up and pay more taxes to get back on solid fiscal footing. I hope we can be mature enough to realize that.

[Kearsen]

99 weeks of unemployment…

[Least_Original_User_Name_Ever]

Apparently, Palin and a couple of conservatives now are doing the math and realizing they shouldn’t have made this deal-they could have got more of what they wanted (possibly) by waiting after January 1st.