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Could a compromise be reached over tax cuts?
U.S. President George W. Bush addresses a rally at Lafayette Regional Airport in an effort to sell his tax cut plan to the American people 09 March 2001 in Lafayette, Louisiana.
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TEXT OF INTERVIEW
JEREMY HOBSON Looks like a bipartisan compromise on the Bush Tax cuts is coming together. It would likely include an extension of unemployment benefits and perhaps an extension of tax credits that were included in the stimulus package last year.
Marketplace's David Gura is covering this story for us in Washington and he's with us now. Morning, David.
DAVID GURA: Good morning, Jeremy.
HOBSON: So bring us up to date. Where do negotiations stand?
GURA: Well, the Senate rejected President Obama's proposal, to extend the Bush-era tax cuts for individuals making less than $200,000 a year, and families making less than $250,000 a year. Over the weekend there was a compromise plan that was floated, some senators thought that those numbers were too low, that they should extend the tax cuts for Americans making less than a million dollars a year. That plan didn't get through the Senate either. So, what we're seeing now is a lot of wrangling. There's talk of, maybe, extending the Bush-era tax cuts temporarily, say, for two or three years. I talked to Len Burnan. He's a professor at Syracuse.
LEN BURNAN: The only thing I worry about is that, is the slippery slope. I think that the republicans are clearly are hoping that at the end of a couple years, they'll have the White House and the Senate as well as the House, and then they can make everything permanent.
HOBSON: So this story continues. Now David, we've been hearing about extending unemployment benefits as part of this package, about the different income tax levels that you just talked about. But now there appears to be another point of negotiation, extending the Obama tax credits. Tell us about that.
GURA: Right. One of the concessions they want is for Congress to extend a series of tax credits that were part of the economic stimulus package, that was passed last year. The big one is the Making Work Pay tax credit. That amounts to about 400 bucks for individuals. $800 for married couples. A host of other credits for the working poor. For college students. For adoptive parents. And the administration is weaving these two things together. The Bush-era cuts and the Obama tax credits.
HOBSON: Alright we'll be watching. Marketplace's David Gura, in Washington. Thanks, David.
GURA: Thanks Jeremy.
** How do you pay for tax cuts for the wealthy ? � 1. First attempt : threatening Social Security and Medicare Cut through the deficit panel. � 2. Second attempt : holding the desperate Hostage, say, the Ransom. How long will it take for Obama to learn that we think compromise is a synonym for unconditional surrender, or another Bush-era? � ** The deal based on the outright lies and supportive Dead Media will lead to another Bush-era & irreversible RECESSION. � 1. The reps uses the recession as an excuse for tax cuts for the wealthy. � THIS IS A MIDDLE CLASS RECESSION. � 2. The Republican Senate minority leader has been arguing that the outcome of the midterm elections confers a mandate on Congress to extend the Bush-era tax cuts. "There's bipartisan opposition to raising taxes on anyone at this time." � (a). Only 34 percent of Americans believe that tax cuts ought to be extended for those households making more than $250000 a year, according to a new CNN poll. � (b). A recent CBS News poll indicated that Only 26 percent indicated they support extending the tax cuts for all Americans regardless of income level � (c). In the AP-CNBC poll, 34 percent favor extending the tax cuts for all Americans. � (d). A recent Gallup poll found 40 percent favor maintaining the Bush-era tax cuts for all Americans. � 3. The reps road the waves of deficit reduction just 2 months ago. � Now, 2 months later they are set to increase the deficit and increase the governments debt ceiling just so they can give themselves and their rich pals more money. This isn't what Americans voted for. � 4. Tax cut for small businesses. � A small business bill was blocked for weeks by a republican filibuster in the Senate. � 5. Tax cut for job creation. � (a). There is no evidence that the tax cuts created even a single job. Back when Bush was pushing his tax cut packages through Congress in 2001 and 2003, supporters said the cuts (which weren't balanced with spending reductions) would initiate an era in which the American economy would grow so robustly the nation would be running a surplus of more than $5 trillion at the scheduled expiration date. U.S. now runs a deficit of about $1.3 trillion. In fact, the available evidence is the exact opposite: Former President Bill Clinton left a record surplus and created 20 million jobs, despite the warning of potential economic disaster over tax increase for the wealthiest. � (b). Your Waterloo = our windfall. Even when the economy was on the cusp of entire collapse just like Lehman Brothers ahead of the roll-out of stimulus package, it was held hostage by Audacity of Nope, and the time was running out. Power first then said : Nope ! How do we pay for it ?, Just let it go under exactly like Lehman Brothers. � 6. The GOP along with Big Business bought this past midterm election. The structure that the last champion is authorized to pick the next match winner . � The ruling that allowed Corporate money to back Political Candidates destroyed the very fabric of the Elections and Americans are paying dearly for it. The incessant barrage of negative campaign ads drove most Americans towards something they knew nothing about, the RepublicanÂÂ/Corporate take-over of the US. Millions upon millions were spent to defeat certain Democrats. � 7. From my perspective, Communism & extreme Capitalism have one thing in common : Power First, Corruption at the cost of people !
