Deal reached on tax cuts, unemployment extension

“Position 2: We’ll go along with extending unemployment benefits but only if you agree to extend tax cuts for the rich that will increase the deficit by an additional $700 billion.”

Nonsense. The tax rates that are being extended are the same tax rates that people have been paying for the past 10 years. To say that keeping the tax rates the same will increase the deficit by $700 billion is to assume that that money was the government’s all along and they were only letting you hang onto it out of the kindness of their heart.

That isn’t the correct assumption in a free a society. I’ve never heard anyone claim that when JFK cut marginal rates from 91% to 75% that the government was operating at a deficit as a result.

Dennis, the government didn’t operate at a deficit after JFK’s cuts because he closed enough loopholes to make up the difference. The additional $700 billion added to the deficit is by comparing revenue if the cuts were allowed to expire. Since that means the government will have less revenue and is running a deficit already, all of that adds to the deficit. If it at least stimulated the economy that would temporarily be OK, but upper income cuts don’t stimulate, so it’s just lost revenue.

Eric, it boils down to who you believe owns the generated wealth … the government or the people who earned that wealth. There is no additional $700 billion deficit if you believe that people own their earnings.

… it boils down to who you believe owns the generated wealth … the government or the RICH PEOPLE who “earned” that wealth. There is no additional $700 billion deficit if you believe that RICH PEOPLE “own” their earnings.

Another correction.

… if you believe that RICH PEOPLE “own” their “earnings.”

Tax cuts not based on one’s ability to share the burden of taxes is irresponsible given the ongoing deficits and the still-growing national debt.

So with the unemployment extension, does that mean that those of us who are about to exhaust our final tier will get benefits through 2011? As it is, I have to get recertified halfway through each 13 week tier in order to get the second half.

I would really love it if those that believe people receiving unemployment would stop to think. Not only would I prefer to be earning a paycheck, but I am in no way getting away with doing nothing by getting half of what I used to earn. Making ends meet was occasionally tricky with a full time job. Cut that in half and have your rent, utilities, and food costs keep escalating and tell me you are making out.