First: when POTUS made remarks a few years back that he would end Bush tax cuts, what he did not know is we would be in a DEPRESSION(Historitans will say this was a depression).
That changes everything!
Join me over the jump for Mr. Goolesbee and a chalkboard- school video:
Here is his video:
http://www.whitehouse.gov/...
And here is an excerpt:
[What the framework means for working families
Remember where the Republicans were when we started this process. Their tax proposals included no extension of tax credits like Making Work Pay, the expanded refundability of the child credit, the Earned Income Tax Credit (EITC), or our new expanded – and partially refundable – tax credit for college. Several of these tax credits were not contained in the progressive and fiscally responsible House-passed tax bill supported by the President.
Let’s start with what the payroll tax cut means for working families. Any single person with kids who earns over $20,000 will do better under this framework than they would have if we had fully extended Making Work Pay with full refundability. So will any couple making over $40,000.
What is true is that if you look only at what we secured on the payroll tax cut, a single parent of two children working full-time at the minimum wage, making $16,000 a year, would get a payroll tax cut worth $320 – $80 less than what they got from Making Work Pay this year.
But that misses one of the most important wins for progressives in this negotiation. The President secured the full increase in the Child Tax Credit for working poor families that Democrats had fought so hard for in the Recovery Act – even though this type of refundability is strongly opposed by Republicans. That means that the same family making $16,000 would get an additional tax cut of nearly $1,500 – multiples more than the difference between Making Work Pay and the payroll tax cut.
On top of the refundable Child Tax Credit , the President successfully negotiated to ensure that every penny of the gains in the EITC that were passed in 2009 are secured for two more years. As is the President’s American Opportunity Tax Credit for college. Extending all of these provisions for two years puts the President in the position to succeed in making them permanent along with the rest of the middle-class tax cuts.
The President also secured a thirteen month extension of unemployment insurance. For the families that need it, this means $300 per week – dwarfing the $80 per year that family making $16,000 lost relative to Making Work Pay. Overall, more than two-thirds of the benefit from extending unemployment insurance flow to families making less than $100,000 per year.
Finally, and most importantly, there is nothing more important for the middle class and working poor than to accelerate the pace of job growth in our country. Nothing. Independent experts estimate that the provisions the President added to the agreement will create more than 1.5 million jobs over the next year – a benefit of this overall agreement that should not be ignored.]
This is so easy to understand...