Monday, December 06, 2010

Payroll tax cut and other goodies in your stocking

Well, remember of the bluster about controlling spending and cutting the deficit during the campaign that ended all of a month ago? Yeah, austerity is sooo 2010, we've moved on.

"The package would cost about $900 billion over the next two years, to be financed entirely by adding to the national debt, at a time when both parties are professing a desire to begin addressing the nation’s long-term fiscal imbalances."

Here are the details that we know so far:

* It would reduce the 6.2 percent Social Security payroll tax on all wage earners by two percentage points for one year. For a family earning $50,000 a year, it would amount to a savings of $1,000 or $20/week.

* The deal also includes continuation of a college-tuition tax credit for some families

* an expansion of the earned-income tax credit

* a provision to allow businesses to write off the cost of certain equipment purchases

* the top rate of 15 percent on capital gains and dividends would remain in place for two years,

* In addition, the agreement provides for a 13-month extension of jobless aid for the long-term unemployed.

Wouldn't it be easier to just have the government mail an iPad to everyone in the US and cut out the middle man? Seriously, it appears that neither party has any political will to make any hard choices. The Republicans need to understand that taxes have to be raised on those earning over $1 million and the Democrats need to curtail spending. Instead, it's more tax cuts and debt for everyone.

We've been cutting taxes since 2001 and look at that cliff it's created in this chart of the deficit as a percent of GDP.

What is it that Einstein said about doing the same thing over and over and expecting different results?

Stat of the day: Number of the world's top 100 buildings in the US.

In 1990 - 80 out of 100 were in the US.
In 2012 - 18 out of 100 will be in the US.

Hey, believe it or not, this is post #1,000 for the blog. Thanks for your time and I hope you've enjoyed some of the past posts. I look forward to the next 1,000 posts :)


1 comment:

Anonymous said...

i like it keep up the good work!!