Lower rates will benefit all taxpayers, but swell longer-term deficits
Think of it as a stimulus plan with a large price tag.
The tax deal between the White House and Congressional Republicans, if approved, will put a little extra money in your pocket for the next two years. But you're going to pay for it eventually.
Without sizeable cuts in federal spending, Americans can expect higher taxes to cover the $500 billion cost of the package down the road.
The hope is that the plan will help boost spending, increase demand and get companies back in a hiring mood. But the deal doesn’t include spending cuts to offset the expiration of lower tax rates. That means the government will have to borrow to pay for the plan.
Congress and the White House are still hammering out the details. But without a deal, temporary tax cuts enacted in the early 2000s will expire this month, sending rates higher across the board and threatening to dampen an already feeble economic recovery.
The size of the package won’t be known until the details are finalized. Initial estimates put the cost at around $500 billion over two years. Here’s where all that money will flow:
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4 comments:
This problem won't get fixed because congress does nothing but fight for their own jobs and their own party.
Thats why conservatives won't get real and talk directly about fixing ss, medicaid, medicare, and defense (the real big spenders) and rather fool the base by talking about food stamps and public housing.
This is while the left whines about unemployment benefits yet they are wasting time worried about gays in the military and amnesty for illegals instead of getting people back to work.
And the beat goes on....
So the republicans have fought to increase our debt.
anonymous 3:12, is that all you've got???
All this shows is how hipocritical the Republicans are. Their campaigns were all about reducing debt, but they are not willing to reduce taxes costs by 700 billion dollars. Just ridiculous. Shows that they are lying from the get go. Say hello to a democratic congress in 2012! Thanks guys!
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