Newsflash:House Republicans cave in!!

[Ausm]

As I predicted, House Republicans just caved on Tax cuts for peons. It doesn't look like Boner got 98% of what he wanted in this fight.

http://news.yahoo.com/house-republic...140256639.html

Have a nice day.

\que Happy Dance!

 

[PeshakJang]

Congrats to the dems for holding the middle class hostage. See
You in 2 months.

 

[pcgeek11]

Congrats to the dems for holding the middle class hostage. See
You in 2 months.

Yep in 2 months the Dems will be trying to fuck another goat...

 

[Jhhnn]

Congrats to the dems for holding the middle class hostage. See
You in 2 months.

Hostage to what?

I think you're mis-identifying the hostage takers here. This was Repubs latest effort before accepting the Senate's 2 month extension-

http://motherjones.com/politics/2011/12/unemployed-insurance-ged-drug-tests

Gotta luv it, especially the blind ideological ardor of their fanbois...

 

[PeshakJang]

Hostage to what?

I think you're mis-identifying the hostage takers here. This was Repubs latest effort before accepting the Senate's 2 month extension-

http://motherjones.com/politics/2011/12/unemployed-insurance-ged-drug-tests

Gotta luv it, especially the blind ideological ardor of their fanbois...

Yes, it's wonderful how $40 a paycheck will buy your loyalty for a couple months... Despite the fact that it will probably cost more in administrative expenses over that same period than it is worth.

But hey... If hundreds and hundreds of billions in cash spent on anything and everything over the last 2 years wasn't effective enough... Then by golly, an extra night out at Chili's sure will.

 

[HomerJS]

Yes, it's wonderful how $40 a paycheck will buy your loyalty for a couple months... Despite the fact that it will probably cost more in administrative expenses over that same period than it is worth.

But hey... If hundreds and hundreds of billions in cash spent on anything and everything over the last 2 years wasn't effective enough... Then by golly, an extra night out at Chili's sure will.

The administrative costs would be associated with changing the rates. In order to maintain the 2 month extention nothing needs to be done.

If the GOP passed a clean 1 year extention we would have had it.

 

[Ausm]

Hostage to what?

I think you're mis-identifying the hostage takers here. This was Repubs latest effort before accepting the Senate's 2 month extension-

http://motherjones.com/politics/2011/12/unemployed-insurance-ged-drug-tests

Gotta luv it, especially the blind ideological ardor of their fanbois...

Yeah this is similar to the GOP's hardon for voter suppression. The GOP in my State is spending 8 million+ in taxpayer money to thwart something that doesn't exist.

 

[Engineer]

Yes, it's wonderful how $40 a paycheck will buy your loyalty for a couple months... Despite the fact that it will probably cost more in administrative expenses over that same period than it is worth.

But hey... If hundreds and hundreds of billions in cash spent on anything and everything over the last 2 years wasn't effective enough... Then by golly, an extra night out at Chili's sure will.

So you're saying that tax cuts don't stimulate the economy? :hmm:

 

[Paul98]

WOW I the republicans have gone off the deep end. Do you not remember how this started? What Obama and the democrats were fighting for, all of what they caved in on and how the republicans took? Where the senate and house were right before the bill went back to the house? Republicans have gone over the edge crazy.

 

[Fear No Evil]

Yeah this is similar to the GOP's hardon for voter suppression. The GOP in my State is spending 8 million+ in taxpayer money to thwart something that doesn't exist.

Obama and the Dem's hardon for destroying social security and killing our seniors makes that 8 million look pretty minor.

 

[Engineer]

Obama and the Dem's hardon for destroying social security and killing our seniors makes that 8 million look pretty minor.

What does this tax cut have to do with killing SS? The funds are replenished though general revenues. It's just a shift of money from the general to the SS fund to allow these breaks.

 

[EagleKeeper]

So you're saying that tax cuts don't stimulate the economy? :hmm:

Where do you put that 30 or 40/week?

Major purchases or misc spending?

$40 assuming you make $100K

 

[fskimospy]

Where do you put that 30 or 40/week?

Major purchases or misc spending?

$40 assuming you make $100K

Miscellaneous spending, which is the entire point. Tax cuts are among the least effective types of stimulus, but among them payroll taxes like this that put small amounts of money in people's pocket are about the best you can do.

 

[PeshakJang]

So you're saying that tax cuts don't stimulate the economy? :hmm:

A temporary tax cut does very little. Especially such a small one. It literally does nothing to stimulate business, and in effect creates more uncertainty now that businesses have NO IDEA what tax policies are going to be in 3 months, much less 1-5 years.

 

[fskimospy]

A temporary tax cut does very little. Especially such a small one. It literally does nothing to stimulate business, and in effect creates more uncertainty now that businesses have NO IDEA what tax policies are going to be in 3 months, much less 1-5 years.

That is of course factually false, I am unaware of a single economist that believes such a move does 'literally nothing to stimulate business'. Can you provide links to back up this assertion?

Additionally, businesses cite low demand as being the primary problem for their business, not uncertainty about payroll tax levels. Tax cuts such as this increase demand, thereby addressing their #1 concern.

 

[Genx87]

Was this really in doubt? I cant believe people really believe these parties wouldnt come to an agreement.

 

[fskimospy]

Was this really in doubt? I cant believe people really believe these parties wouldnt come to an agreement.

I don't think anyone doubted there would be an agreement, a payroll tax cut is basically a Republican proposal. That's why it was so bizarre from the beginning with the House, that they were fighting against something that conservatives like.

 

[Engineer]

Where do you put that 30 or 40/week?

Major purchases or misc spending?

$40 assuming you make $100K

I can say the same about any of the tax cuts over the last 10 years. Again, do tax cuts stimulate the economy or not? Does misc. spending not stimulate the economy? I guess if you're not making enough to pay your bills and receive this to fill in that gap, sure (doesn't help the economy much).

 

[cybrsage]

I find it interesting that people blast the opposing party for doing the right thing. That is one of the reasons why the parties act like they do.

 

[Darwin333]

So you're saying that tax cuts don't stimulate the economy? :hmm:

So you are saying that they do?

 

[Darwin333]

That is of course factually false, I am unaware of a single economist that believes such a move does 'literally nothing to stimulate business'. Can you provide links to back up this assertion?

Additionally, businesses cite low demand as being the primary problem for their business, not uncertainty about payroll tax levels. Tax cuts such as this increase demand, thereby addressing their #1 concern.

While you are correct in theory, lets be realistic. This is what, $12-13 bucks extra a week for median income? Don't get me wrong, some demand will go up but this will barely even register as a blip on most companies radars if it registers at all.

It will be good political theater in 2 months but the real fun will be when they actually try to let the temporary tax cut expire.

 

[EagleKeeper]

A small amount in the hands of a person every week does not have the same kick as the combined amount in a month or year.

It looks goods as a number, but not at the store.

Give a person $500-$1000 in December instead of doling it out over the year and there will be a much bigger impact than a piddling amount each week.

the piddling amount is noise in the spending system. The large amount actually goes out and gets something that was not previously available.

Few people will put the $40/wk aside until the end of the year.

This is why when Bush handed out the $300/person checks to half the country's adults; it had a much bigger impact than the payroll cut this round. the government then recollected those funds come April; but it was a shot in the arm to the economy at the time.

 

[First]

I find it interesting that people blast the opposing party for doing the right thing. That is one of the reasons why the parties act like they do.

No, they did the wrong thing, as it was well known the 2 month extension was the best compromise available to buy time to extend it the additional 10 months. The political theater involved was impractical, childish behavior by a Repub minority in the House that has little impulse control.

 

[LTC8K6]

$80 in your pocket is better than $480 in your pocket?

Okay...

What about the other stuff in the bill, like that mortgage fee? That will cut into that $40 for some folks.

And the Keystone pipeline? That's in there too.

This was nothing but a joke of a 2 month punt on the issues by both sides...

 

[Ausm]

Where do you put that 30 or 40/week?

Major purchases or misc spending?

$40 assuming you make $100K

I agree 40 bucks/week don't sound like much until you do the math.

Let's take my City for example just the city limits itself you are talking around 250,000 people and out of that population it is safe to say at least half easily make over 100K.

Ok so 40/week X 52weeks/yr = 2048 a person/yr extra spending cash
You take 2048 X 125,000 people=26,000,000 dollars that can be injected into the economy.

26 million isn't chump change in my book.