The Deal is Struck- No Offsets For All

The President announced tonight a deal on the extension of ALL of the Bush tax cuts with Republicans. The deal, predicted some time ago here, (November 6th) will extend for two years all of the Bush tax cuts while also extending unemployment benefits for thirteen months. Also included was a 2% employee payroll tax rollback for 2011, as well as continuation of the increases in the Earned Income Tax Credit, Child Credit, and the American Opportunity Tax Credit. Republicans won a continuation of the Estate Tax at 35% with a $5 million dollar exemption.

Both sides argued in the run up to this about which portions of the prospective deal should be “paid for” with budgetary offsets. They did what you would expect them to do. They paid for none of it.

The initial reaction from Democratic lawmakers was cool, with some real bitterness being shown at the terms of the deal. If by chance Obama cannot deliver Democratic votes for this deal then all hell will indeed break loose. The left wants to fight, figuring Obama has misplayed his hand. While I think that a deal was necessary I do believe that the Republicans got the better of the President here. But that is a story for another post.

http://c.brightcove.com/services/viewer/federated_f9?isVid=1

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2 Responses to The Deal is Struck- No Offsets For All

  1. Jules Gordon says:

    Your Honor,
    I do agree with your conclusions.

    I have put up with your smarmy entries in which you dig my Republican compatriots, forgetting the drubbing your friends got in the last election.

    Now the Democratic party will be the party of NO. They hate it that they can’t ‘Tax and Spend’ us into oblivion.

    It must gall them that the tax cutting effort is called the ‘Bush’ tax cut.

    Jules

    PS: I see that President OBAMA and Governor Deval Patrick have combined to screw the state out of $500,000. Nice friends you have.

    Like

  2. Bill Manzi says:

    Jules,

    The Republicans deserve every dig I have given, regardless of election results. This deal will cost $900 billion, ALL added to the deficit. But it is the Republican version of the Obama stimulus package. With Republicans back in charge of the House my assumption is that the GOP will now become substantially less concerned with the deficit.

    Bill

    Like

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