Sponsored Content
« Byron York: For All Their Wailing About Obama Selling Out, Congressional Democrats Could Have Passed Their Preferred Tax Cuts -- If They Had the Balls | Main | Joe Lieberman: the NYT should be investigated for breaking espionage laws »
December 07, 2010

Economists Predict Payroll Tax Deduction Will Have Significant Stimulus Effect. UPDATE: Reid Not Thrilled, Pelosi Didn't Know Obama Was Going To Go Public?

Deutsche Bank is pretty bullish on the payroll tax reduction aspect of the GOP-Obama tax deal.

According to our calculations, the Social Security tax reduction could add 0.7% to output next year, thereby taking Q4 over Q4 real GDP up to 4.1% versus our current 3.3% projection. This conclusion is based on the assumption that there are not offsetting expenditure reductions elsewhere in the Federal budget.

Goldman Sachs has a similar estimate.

If any part of this deal is going to stimulate the economy, this is it. The rest of the deal is mostly continuation of what we've been doing. Keeping the rates as they are was always defensive, a way to prevent Obama and the Democrats from doing more harm.

Obama is taking credit for the payroll tax cut idea and calming it is part of the concessions he got from the GOP as part of the overall agreement to keep tax rates steady but that’s simply BS.

Remember during the debate over the so called “stimulus” bill when Obama said the GOP didn’t have any ideas and simply was saying no to everything? That was always a lie, the GOP did have an alternative plan and guess what was item number one in it (pdf)?

Eliminate the 3.1% payroll tax for all American EMPLOYEES for 2 years, and use general revenue to pay for Social Security and Medicare obligations.

Imagine what the last two years would have been like had the stimulus actually been used in ways that stimulated the economy and not as a means to pay off Democratic interest groups.

As for the tax cut deal…Paul Ryan has come out for it but Harry Reid doesn’t seem to be in a rush to pass it. (Update: Reid says the deal needs "more work")

After today’s (un)presidential temper tantrum, I can’t imagine that Democrats are more interested in swallowing this pill than they were yesterday. If they fail to pass it in the lame duck, I’m guessing H.R.1 in the 112th Congress is going to be a bill to make the tax cuts permanent.

This is getting very, very interesting.

Wow:
Pelosi isn't feeling the love in her caucus for the deal and then it got weird.

"We have some unease," Pelosi says of Obama plan & admits to being in the dark: "we didn't realize...agreement was going to be announced."

They didn't let Pelosi know they were announcing it? Can you say, "Amateur Hour"?

Best Democratic crack up in decades!


digg this
posted by DrewM. at 04:15 PM

| Access Comments




Recent Comments
redridinghood: "We're living in the Twilight Zone. ..."

Gentlemen, this is junta manifest: "You do realize you are backing the extra-judicial ..."

EveR: "WDW stopped selling new Annual Passes a couple yea ..."

Jordan61: "AKA - Elemental and Indy 5 are looking catastrophi ..."

ace: ">>>I bet if they could go back to the Timothy Zahn ..."

Christopher Taylor [/i][/i][/s][/s][/b][/b][/u][/u]: "[i]No one should buy Star Wars.[/i] I can see t ..."

Additional Blond Agent, STEM Guy[/i]: "[i]yes I fixed it, thanks to someone snarking at m ..."

Barnacle Bill the sailor: "yes I fixed it, thanks to someone snarking at me ..."

Awkwafina Scuttlebutt Song: "[I]So here's the scuttlebutt about Disney possibly ..."

Joe Mannix (Not a cop!): "No one should buy Star Wars. It's now a c-list bra ..."

What's a Seawolf?: "Whoever buys Star Wars should declare Disney Ep 7, ..."

bonhomme[/i][/i][/i][/b][/b][/b][/s][/s][/s][/u][/u][/u]: "Nick's even got the pedo-stache. Open secret inde ..."

Recent Entries
Search


Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64