Oh my, this week has been a party in Washington. The politicians have shed their lipstick and we get the pigs they really are.
The President, some Democrats, and some Republicans have reached an "agreement" regarding a second stimulus package, which encompasses, but is certainly not limited to a two-year extension of the 2001 & 2003 tax cuts.
Inside the agreement...
-A two year extension of lower-tax rates on everyone.
-A 13 month extension of Unemployment benefits.
-Social Security tax will be cut by 2% on individuals for one year.
Total cost of stimulus: 900 Billion.
Resembling a Keynesian plan, I have no doubt it will boost the economy, but what about that debt & deficit that will choke our future and every politician campaigned on decreasing?
Apparantly it is Apparently to grow, and unlike the first stimulus, the vast majority will not be payed back with interest. Among the details:
"Analysts at BNP Paribas estimate the cost of the package at $1 trillion over two years. That would increase the federal deficit in the 2012 budget year from 6.9 percent of the nation's gross domestic product to what BNP calls a "much scarier" 9.8 percent."
"The top 1 percent of earners would save nearly $77,000 on average. And the poorest 20 percent would get an average tax break of just $396."
"will add as much as $900 billion to the national debt. That expense would be higher than the $814 billion Obama stimulus package"
So, to all the Republicans, Democrats, hardcore liberals, and tea-party supporters, I must ask: How will you pay for this? What will you cut? The military? Medicare? Social Security? Interest on our growing debt?
Combined, these outlays constitute nearly 70% of our budget. What will you cut?
I think we all know the answer: We won't.
So while this plan certainly aids the economy, it will only contribute to America's inbound Trojan horse.
on December 7, 2010, 7:12 pm