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View Diary: No, Mr. President. No deal. No sacrificing our people to hostage takers. Let's jump. (419 comments)

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  •  Taxes only take money out of the economy (1+ / 0-)
    Recommended by:
    PinHole

    when the money isn't reinjected as spending.

    •  Yes, of course (6+ / 0-)

      But it'd be one thing (perhaps) if President Obama were cutting Social Security in the context of a deal that would increase spending now to address the jobs crisis, but on the contrary, this is austerity for 2013:

      What’s missing there is the payroll tax cut, which will almost certainly be allowed to expire. That’s another $125 billion in austerity for 2013, for a total of $225 billion in spending cuts and as much as $100 billion in taxes. The fiscal slope contemplated $500-$600 billion in fiscal snap-back in 2013; this deal appears to include HALF OF THAT FISCAL CUTBACK.

      But wait! There’s the stimulus mentioned in the previous piece. Upfront spending on infrastructure, along with an extension of expiring unemployment benefits. Unemployment benefits are no more than $30 billion now, since they’ve been whittled from 99 to 73 weeks at most (it’s rather shocking to consider unemployment benefits “stimulus,” rather than what you do when there’s high unemployment). The infrastructure spending is undefined, but maybe you get $50 billion out of it, tops. I seriously doubt it, since that was the Administration’s initial offer. So maybe you get $80 billion (probably more like $60 billion) in stimulus to offset as much as $325 billion in austerity. That’s not going to do the job.

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