December 7th, 2010
07:55 AM ET
3 years ago

Tax cut deal and surprise stimulus – the cost

New York (CNNMoney.com) - The compromise on the Bush tax cuts announced Monday night between President Obama and Republicans could cost between $600 billion and $800 billion if ultimately signed into law - no sure thing given opposition from many Democrats.

About half of the measures in the announced package might be considered new short-term stimulus, meaning they may add to the deficits for two more years, but could help maintain the economic recovery and help spur economic activity and job creation.
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Filed under: CNNMoney.com • Taxes
soundoff (9 Responses)
  1. Uncle Sam

    Why have so many in the liberal media said there is a "cost" to maintaining these tax rates at current levels? Why did they say they are unfunded. The cost and unfunded (but borrowed from China) costs in this agreement is extending unemployment. Funny thing is I hear some local employers crying for workers. You have to earn $15 plus a great benefit package at a processing plant or drive a truck (home every night) for about $40,000 / year plus benefits.

    December 7, 2010 08:10 am at 8:10 am |
  2. Rob R

    Nothing new for Republicans now is it? Rail agaist spending unless its spending that you want – for millionaires and billionaires.

    What I think they should have done was tie to tax cut extension directly to the unemployment rate. If Republicans really believe that tax cuts for millionaires will create all these jobs, then they should extend them all for 1 year. And then on Dec 31, 2011, if the unemployment rate is below 9%, they can extend them for another year where by 2012, it will have to be below 8% to continue. If the unemployment rate were to stay above 9% at the end of 2011, then all cuts expire, no ifs ands or buts. That way, millionaires might really be forced to create all those jobs their Republican buddies say they are going to create instead of sticking those tax savings into a shoebox.

    December 7, 2010 08:15 am at 8:15 am |
  3. John Boehner is the dumbest person to become speaker

    Anything that the republicans support is chicken crap. Tax cuts for the wealthiest that will balloon the debt, means the GOP will be able to run in 2012 against the huge national debt they created but will pass the blame on to Obama. As for job creation, I cannot imagine Rush Limbaugh spending the additional $2.2 million in taxes the GOP just saved him.

    December 7, 2010 08:41 am at 8:41 am |
  4. Whatever

    See the Republicians are not the fiscal hawks they claim to be. They don't mind adding to deficit!!!! No difference between the parties after all. Very sad!!!!!!

    December 7, 2010 09:22 am at 9:22 am |
  5. juno reaction

    I voted for obama an he has yet to stand up to these republican goons. Hilary i'm starting to think would have done a better job and at least given a fight. Obama spent a majority of his presidency pandering to republicans. Nothing has gotten done. Other than a chopped up healthcare bill. And now he is willing to let the rich keep on profiting will the working class strugles and unemployment benefits dwindle and yet the country goes deeper into debt. I care not to listen to his nonsence anymore.

    December 7, 2010 09:26 am at 9:26 am |
  6. Rick McDaniel

    No one should support this obvious give-away......which just amounts to more wasteful spending on Obama's part. Reject the deal, and force the cancellation of these wasteful proposals. Let the tax cuts expire for everyone, if the GOP won't concede to loss of tax cuts for themselves.

    December 7, 2010 09:40 am at 9:40 am |
  7. Oy Vey Az

    Does anyone really believe that $800 billion is going to create jobs ? What a joke ! The greedy few who will benefit from this tax break could have created jobs long before now. Richy Rich and his pals won't strike up the jobs band for the rest of us until they have thoroughly played all the notes of Obama's dirge. Heaven help the middle class for the next two years.

    December 7, 2010 09:50 am at 9:50 am |
  8. King

    The stimulous is needed. If the economy goes down the hole will be even bigger to over come. We need to start concentration on demand and stop feeding the big companies with all these money that they can't and won't do nothing with, because the have no customers with
    Money to buy their product. That's why these big corporations won't invest their money into the economy because the people don't have any money to buy their product. Why they keep asking for tax break is just straight up greedy. We need to build our demand base, so that the customers can have money to support these business so they hire. More workers.

    December 7, 2010 10:14 am at 10:14 am |
  9. Sniffit

    There's one sure way to reduce that cost by $700B. DO IT and stop pandering to the already wealthy, who are going to take their extended tax cuts and continue to simply horde and consolidate it. And CNN, stop avoiding it and report the findings of the Dept. of Labor and CBO studies regarding what ACTUALLY stabilizes and stimulates the economy. Avoiding reporting those facts just so the deluded conservatives out there can perseverate on their debunked ideological nonsense is a sham. Sure, half or more of them will simply disregard it and rationalize those studies away as if they were meaningless (and as if one was not ordered by fellow conservative Dubya), but the rest of the country deserves to know that the FACTS are out there in the public discourse. Studiously ignoring them when the are eminently relevant to the immediate debate makes a mockery of any claim you make to having ANY 'journalistic integrity." Tell the ad department to screw off...THERE IS NO CONTROVERSY HERE...THE ANSWER ACTUALLY EXISTS.

    December 7, 2010 10:17 am at 10:17 am |