As previously mentioned in this thread, the stimulus bill was made nearly 40% tax cuts specifically as a gesture towards more conservative people, and this was done despite the fact that tax cuts were widely viewed as some of the less effective means to stimulate the economy.
And why on earth would no Republicans voting for something be a sign that Obama hadn't attempted to be bipartisan? If the Republicans hadn't attempted to be bipartisan the exact same thing would have happened. I gave the reason that quite a bit of the stimulus bill was at odds with liberal ideology as evidence for the Democrats attempting to be bipartisan. What evidence can you offer that the Republicans were doing the same?
As I have asked others in the past, the bill that was passed was 60% spending and 40% tax cuts (roughly), and you view this as a partisan, party line bill. What proportion of tax cuts and spending do you believe would have been a 'bipartisan' bill?
Yeah it was previously mentioned, but ignored because it's farcical partisan tom-foolery.
Republicans/conservatives wanted a rate cut spreading the money around broadly under the theory people would spend it and stimulate the economy. (The left thinks they would have saved it or paid down bills. Even if true I'm not sure how that's a bad thing because it would have been a captial influx for the banking system.)
A compromise would have been, say only a 5% cut if the Repubs wanted a 10% cut.
Instead what we got was:
1) Another annual extention of the inflation indexing for AMT rates & exemptions. This is largest of the so-called tax break. So the biggest piece of the tax cut was to not raise rates in the future? Anyhoo we all know the Dems were do it anyway (as they have in the past), it's mostly a tax higher income types in high taxed urban areas (i.e., Dem voters) but by sticking it in th estim bill they get to claim 'compromise' (quite cynical IMO) and avoid PAYGO (which is another promise they've avoided). Also, with unemployment and income being what they are nowadays it's likley the $ effect of this is overstated.
2. Welfare payments masquerading as tax cuts. As a tax professional I find this particularly annoying. Because "welfare" is a politically unpopular word Congress has shifted to the (relatively newly created) "refundable" tax credits. I.e., federal give-aways to those who don't pay income tax. And they use the IRS to administer it because it's administratively convenient even though a bastardization of the tax system.
3. There was a broad "credit" of about $250 - $400 for SS retirees and workers making under $75K etc.
4. Incentives to buy new cars & homes. Even though labelled as a "tax cut", this is of course nothing of the sort, again just administered through the IRS for convenience.
BTW: you're quoting the highest possible percentage for "tax cuts", others place it at about 10-12% of the total (and that may be overstated because of the AMT provision estimates).
I agree with you though that these so-called "tax cuts" were/are ineffective at economic stimulus, that's why the Repubs wouldn't vote for even these items. If this is "compromise" I can easily see why the Repubs aren't too interested in this version of it. It's mostly just 'spin' on the word "tax cuts" for political purposes.
Fern