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Saturday, December 4, 2010

WTF? - Vice President Biden Calls For Tax Cuts While Republicans Vote To Raise Taxes!


Many politicians will say whatever they have to in order to get reelected.  Once their safe, it's business as usual while the American people suffer!

-ADY "A Regular Guy On The Issues"

Senate Republicans vote to raise taxes on middle class

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Sat Dec 04, 2010 at 07:33:12 AM PST

The voting isn't over yet, but nonetheless, the outcome isn't in question. (David has the backgroundon the two votes in the Senate this morning.) Republicans continue to hold their breath in order to keep billionaires happy and blow up the deficit. And get the added bonus of voting against extending unemployment benefits.
Nothing really reflects the absurdity of this debate better than this exchange from the morning's debate between Senators Schumer and Grassley. The Dems argue on facts, the Republicans argue nonsense, and will win the day. On behalf of billionaires. Against the rest of the country.
Mr. Schumer: I thank my colleague. And through the chair, I'd simply like to ask my colleague this. I understand we have a different point of view here. We both care about deficit reduction. Could he please explain to me why it is okay to take $300 billion of tax cuts for those at the highest income levels, above a million, and not pay for it and yet we have to pay for unemployment insurance ex extension?
Mr. Grassley: I thought I made that point very clear, because the taxpayers are smarter than we in Congress are. They know that they give another dollar to us to spend and it's a license to spend $1.15. So it just increases the national debt. And when it comes to paying for unemployment compensation, we can pay for unemployment compensation because the stimulus bill was supposed to stimulate the economy and it's not being spent. And if you put money from stimulus into unemployment, you don't increase the deficit and you'll also have the money spent right away.  
Mr. Schumer: I would just say that the answer doesn't deal with deficit reduction. If you care about deficit reduction, the two should be treated equally. A dollar of tax break for millionaire and a dollar of increased unemployment benefits increases the deficit the same amount. However, every economist -- I saw we had a chart up about economists before -- will tell you that a dollar into unemployment benefits stimulates the economy about four times as much as a dollar into tax decreases for millionaires. That's pretty universal. Mark Zandy, John McCain's economic advisor during his campaign, said that a dollar of tax breaks for millionaires stimulates the economy about 30 cents worth. A dollar of tax -- a dollar of unemployment benefits increases the economy by about $1.62.
The fact that Republicans will be able to obstruct the Dem package today does not change any of the facts that extending the tax cuts for millionaires will continue to cost the country, dearly. Maybe instead of negotiating with the terrorists Senate Republicans, it's time for President Obama to start talking about the veto pen.
The first vote is happening now. For the highlights of the debate, check out the liveblog.

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