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View Diary: We're Getting What We Wanted From The President Now: A Fight (316 comments)

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  •  $447 billion jobs bill of which: (3+ / 0-)
    Recommended by:
    venger, NoMoreLies, boofdah

    nearly $180 billion merely replaces the current payroll tax cuts and unemployment benefits extension costs of $112 billion and $56.5 billion, respectively.

    And $25 billion will replace a similar amount of deficit reduction in 2012 as a result of the Budget Control Act of 2011 ($25 billion in spending cuts in 2012 even though the overall multitrillion deficit reduction is back-loaded).

    So what we have left is approximate $250 billion in new spending paid for by an increase in tax cuts on the wealthy (primarily through elimination of tax loopholes).

    The Rethugs may agree to payroll tax reductions on individuals and small businesses (since they have been proposing these reduction for a long time to weaken the the direct connection between direct SS contribution to benefits - and thus bringing SS one step closer to being a type of welfare program instead of insurance program), and may agree to some extension of unemployment comp. The rest of Obama's proposals are, for the most part, DOA.

    So that leaves approx. $250 billion in payroll tax reductions and extension of UE (i.e., only $50 billion in new spending in 2012 compared to 2011)

    Obama's proposing to pay for his jobs programs by increases in taxes on the wealthy are, of course, also DOA. The Rethugs will demand further spending cuts to pay for Obama's jobs program, and will, most likely, succeed in getting Obama's/Democrats acquiesence.

    Thus there will be no new stimulus in 2012 compared to 2011, and no boost to jobs and an economy that has only grown by 0.7% in the first six months of 2012.

    Thus onto the election in Nov. 2012. But in the meantime the US, European, and world economy will very likely tank and go into another deep recession in the next few months, due to Europe's sovereign debt crisis, and the continuing de-leveraging of American consumers, who are unemployed, underemployed, underpaid, and underwater,

     

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