|tax cuts, Don't Ask Don't Tell
||[Dec. 8th, 2010|02:02 pm]
President Obama cut a deal with the Republicans to extend all of the Bush tax cuts for two years (the Democrats had wanted to just extend the ones on the first $250K of income). In return, he got extending unemployment insurance for 13 months, cutting the payroll tax (a regressive tax) by 2% in 2011, boosts to some various tax credits that generally help low income families (Earned Income Tax Credit, Child Tax Credit, a credit for college tuition). Here are the details.
I understand how some people feel that this is terrible messaging on the part of Obama - the tax cuts above $250K affect the richest 2% of Americans, and they're generally not stimulative. But I think he got a decent deal given the hand that he was given, and the fact that Republicans were going to filibuster extending the tax cuts if they only covered income under $250K. From the Atlantic: 5 Ways to Look at Obama's Grand Bargain (which makes the point that a lot of these cuts will be stimulative) and A Good Deal for Democrats on Tax Cuts (admittedly written by a Republican).
Word on the street is that Don't Ask Don't Tell may come up for a vote tonight in the Senate to try to break the filibuster. Here's a list of swing Senators - please contact yours if he/she is on this list! You can follow along with coverage at AMERICABlog Gay today.