Zera's Blog

A Citizen's View from Main Street

Eric Cantor’s Small-Business Tax Cut Faces Threat Of Presidential Veto


And a well-deserved veto it would be.

Holy Crap, Batman! Look at the numbers!

$46B added to the deficit in order to create 100K jobs. That’s $460,000/job. That’s likely 10 to 15 times the salary of the jobs created. There is no possibility that this would generate enough new revenues to pay for the cuts, even if the new jobs were taxed at 100%.

Cutting taxes for 22M “small” businesses to create 100K jobs means only 1 job would be created for every 220 businesses getting a tax cut – and that’s if the republican best-case scenario proves true.

Official portrait of Congressman .

Official portrait of Congressman . (Photo credit: Wikipedia)

I think that Eric Cantor and I have radically different definitions of “potent economic stimulus”. This is designed to be incredibly inefficient, ineffective, and wasteful as a “jobs” program.

Could the lies be any more blatant? Promoting this as a “jobs” bill is an insult to the intelligence of every American, and a clear demonstration that republicans are fiscally irresponsible in ideology and practice. After all, they can blame President Obama for not signing it, or the Senate Democrats for not passing it, and never face responsibility for passing it. I expect them to accuse the Democrats of playing politics in stopping this moment of insanity.
Read the Article at HuffingtonPost

April 19, 2012 Posted by | 2012 Election, Budget, Economics, Ethics, GOP, Legislation | , , , , , , , , , | Leave a comment

Obama-GOP Tax Cut Bill Turning Into ‘Christmas Tree’ Tinseled With Gifts For Lobbyists, Lawmakers


This deal has turned into just about everything that the last election protested. Secret deals, buying votes, huge deficit spending.

Extending UI benefits has a positive stimulativ­­e effect. Tax breaks for the middle class, positive but less efficient. The SS holiday is a dangerousl­­y slippery slope. The rest is unstimulat­­ive and unaffordab­­le.

The economy will never recover as long as the tax breaks for the rich remain in place. They just drain too much money out of the economy with very little return. 2/3 of the economy is consumptio­­n-driven, and not enough money is getting back to consumers to sustain it’s growth.

Middle class workers have not shared the benefits of increased productivi­­ty, which has been used to keep job creation low. The middle class has lost a tremendous amount of wealth in the housing bubble, lost retirement money, and been forced to compete on wages with workers in third-worl­­d or emerging economies.

The job creators have all the money they need to start hiring. What they lack is customers. They are waiting for the people they have shorted to start spending money they no longer have. Government stimulus spending is the usual way to break that gridlock, but the effort has been undermined and that well is tapped dry.

Tax cuts for the rich haven’t created jobs, and restoring those rates will not hurt job creation as much as conservati­­ves claim.

This plan may seem like good politics, but it also seems like bad economics.
Read the Article at HuffingtonPost

December 12, 2010 Posted by | Budget, Economics | , , , , , , , | Leave a comment

   

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