(CNN) - The U.S. Senate voted Monday to move forward with a tax deal that would extend Bush-era tax cuts. If it becomes law, it would cost more than:
· The Iraq and Afghanistan Wars from 2001-2008 ($752 Billion according to CBO)
· The stimulus bill ($787 Billion over ten years, from CBO)
· The entire domestic output of South Korea last year ($832 Billion says the World Bank)
The Congressional megadeal on taxes and unemployment is slated to add some $857 Billion to the US debt. Of course, it also keeps billions in Americans' pockets. In this week's American Sauce, we lay out what is in the relatively short bill that feels like a Russian novel. We also tackle Congress' procrastination list and an issue almost ignored: rising gas prices. Click here to listen.
Keep reading for a look at what else is in this tax deal, by size.
The bill itself is just 72 pages long and will be numbered H.R. 4853. But in those 72 pages are a litany of tax cut and policy extensions that affect nearly every American in multiple ways. Here are some of the highlights, as estimated by the Joint Committee on Taxation last Thursday:
* Income Tax Extensions through 2012: $545 Billion
-Bush Tax Cuts, extend through: $408 Billion
-Alternative Minimum Tax protection: $137 Billion
* New Payroll Tax Cut for 2011: $111 Billion
* Business, Investment and Other Tax Extensions: $77.2 Billion
– Depreciation and other business incentives, through 2012: $22 Billion
– Research and experimentation tax credit, through 2011: $13.3 Billion
– State and local sales tax deduction, through 2011: $5.5 Billion
– Ethanol tax credit extension, through 2011: $4.8 Billion
– Restaurant and retail tax credit for capital improvement, through 2011: $3.6 Billion
– Biodiesel and renewable diesel tax credit, through 2011: $2 Billion
– Tuition tax deduction, through 2011: $1.2 Billion
– Railroad track maintenance tax credit, through 2011: $330 Million
– Rum excise tax change, to increase the tax floor on rum from Puerto Rico and Virgin Islands:
– Washington DC investment tax credit, through 2011: $138 Million
– NASCAR and other race tracks, credit for capital improvement. Through 2011: $36 Million
– Mine rescue team training credit, extend through 2011: $5 Million
* Estate Tax Change/Cut for 2011: $68 Billion
* Unemployment Extension for 2011: $57 Billion (NOTE: this estimate is from the Congressional Budget Office)
What are the details of the major provisions?
Click here and listen to this week's American Sauce.
http://podcasts.cnn.net/cnn/services/podcasting/audio/americansauce/americansauce1213.mp3Also included in this meaty episode: the left-over business in Washington, gas prices outside of DC and which world economies are at the top and bottom of the performance list.
Republican greed wins again!!!!!!!!!!!!!!!
Along these same lines of logic, if we instead compared not raising taxes to what the government would get if it taxed all Americans at 75% of wages, this would cost us over twice as much. But that isn't going to happen because raising everyone's taxes to 75% would shut the economy down and government revenue would therefore also decrease.
It will be better for all Americans, and the national treasury to have the economy running higher and more efficiently. That's what extending these tax cuts is all about. The Federal government will be getting a smaller piece of a bigger pie and in the bigger picture that is where we want to be.
Ridiculous. Keeping everyone's tax rates the same COSTS the government nothing. Spending on such items as socialized medicine and corporate bailouts costs the government. As if this weren't asinine enough, this Joint Committee on Taxation has determined that raising the death tax/estate tax from 0% to 35% COSTS the government money. For the privilege of dying in the USA after January 1 2011, 35% of every dollar above 1 million goes to the government.
This bill has to be good for the American people because it came from Bush and the GOP, not to mention all those tea party officials.
Only Dimwits and moonbats count current tax RATES as expenditures! Get your hands out of my pockets, you thieves!
this just moves republicans closer to their altiment goal of spending so much money that we will have no choice but to cut all domestic spending and only finance defense spending . Ronald raegan Bush sr. and Bush jr. are responcible for more than half of this countries deficit of $13 trillion. it was the same in the housing decline run the prices up artificially get you to buy more than be a good guy and help you out of your houses in forcloser because you can't pay the bill and while thats going on take your profits on wall street before the average 401k invester catches on to what is really happening. than have the republicans bail out your banks which in the end made them even bigger than before the bail out. what a risky gamble we are taking with the american dollar value that the rich base their value on. if i were another country right now this bill would make me stop buying american bonds because the risk out weighs the gains in doing so. would you lend money to a person going thru bankrupcy?
How could the government lose money that never belonged to it to begin with? If a thief breaks into my house and steals my money but can't life the TV because it's too heavy for him to carry, can he later that night regret that he lost $500 because he couldn't get away with the TV?
Some of these things could have been reduced or eliminated altogether. Granted, it would have been better had this been done in January of this year. I don't understand why this took so long for the Democrats to do. I mean the flimsy excuse of there were other things to be done is understandable but a copout none the less.