More proof goEMAW libs are economic mental midgets

[Sugar Dick]

TaxFoundation.org article:
Cutting marginal tax rates on labor would have a larger feedback effect in terms of additional economic activity being generated than these credits/rebates, especially because of the progressivity of the federal income tax code which means we rely on the more pro-cylical income of high-income individuals, but labor is still fairly inelastic nationwide, meaning the tax cuts on ordinary income at their given rates would still cost the Treasury revenue.

Yes, taxes derived from capital gains did skyrocket during this same period to cover up or offset some of the losses from decreased income taxes. But that raises a whole different set of issues.

Curious, when this was published?  If back in 2003, obviously this belief no longer applies.

[06wildcat]

Obama has apparently found some new economists:

Economists said the overall package would stimulate the economy not by pumping in new money, as did the Recovery Act, but by ensuring money already going to Americans via the Bush tax cuts and the earlier stimulus spending is not cut off. White House economic experts told lawmakers that the gross domestic product could rise by at least 1 percentage point and unemployment could improve with up to 2 million new jobs. Without the package, senators were told, the economy could contract.

So ... Bush does it and economists uniformly agree that it has no positive impact on the economy.  Obama extends it and, amazingly, economists now note that it has a massive positive impact on the economy.  Politics as usual, carry on.

 

LOL, the income tax extension isn't what they're referring to as the stimulative effect. Passing it for all but the top income bracket would slow growth by about .2 to .3 percent. The other .7 to .8 percent growth is from measures targeted mainly to the middle and lower class. JPMorgan had figured a growth rate of 3 percent for 2011 upon all of Bush's income taxes being renewed. That was revised to 4.5 percent when the deal came out mainly on the extension of unemployment benefits for the entire year and about $120 billion in payroll tax relief.

I never said the Bush tax cuts had no positive effect on the economy either, rather they reduced revenue that treasury would have gotten under Clinton's tax rates.

[Sugar Dick]

Obama has apparently found some new economists:

Economists said the overall package would stimulate the economy not by pumping in new money, as did the Recovery Act, but by ensuring money already going to Americans via the Bush tax cuts and the earlier stimulus spending is not cut off. White House economic experts told lawmakers that the gross domestic product could rise by at least 1 percentage point and unemployment could improve with up to 2 million new jobs. Without the package, senators were told, the economy could contract.

So ... Bush does it and economists uniformly agree that it has no positive impact on the economy.  Obama extends it and, amazingly, economists now note that it has a massive positive impact on the economy.  Politics as usual, carry on.

 

LOL, the income tax extension isn't what they're referring to as the stimulative effect. Passing it for all but the top income bracket would slow growth by about .2 to .3 percent. The other .7 to .8 percent growth is from measures targeted mainly to the middle and lower class. JPMorgan had figured a growth rate of 3 percent for 2011 upon all of Bush's income taxes being renewed. That was revised to 4.5 percent when the deal came out mainly on the extension of unemployment benefits for the entire year and about $120 billion in payroll tax relief.

I never said the Bush tax cuts had no positive effect on the economy either, rather they reduced revenue that treasury would have gotten under Clinton's tax rates.

bullshit.  Prolly had to say that as part of tarp (jk).  Anyways, I thought they didn't get the payroll tax stuff in there, just 15 more weeks of UE Benefits???

[06wildcat]

 

Nothing has been passed, but the deal calls for an extension of UE benefits for all of next year (picking up at 26 weeks of state UEBs and ending at 99 weeks), along with a 2 percent reduction of SS taxes paid by workers (lowering it to 4.2 or 10.4 percent, however you want to look at it).

[wetwillie]

We need a thunder dome match between Sugar Dick and 06Wildcat.  My money would be on 06

[Sugar Dick]

Nothing has been passed, but the deal calls for an extension of UE benefits for all of next year (picking up at 26 weeks of state UEBs and ending at 99 weeks), along with a 2 percent reduction of SS taxes paid by workers (lowering it to 4.2 or 10.4 percent, however you want to look at it).

Whatever the deal is, is going to pass.  Dems aren't going to risk losing this in the waning weeks of their power.

I'd need to see a link to that horseshit your peddling with Chase (a lol, in and of itself).  Reeks of "cut and paste gone awry".  Your quotes are all over the place.

[Sugar Dick]

Some stuff that shows 06 is full of cac (ahhh, the wonders of google)

The Economist
Goldman Sachs now thinks the economy will grow 0.5 to 1 percentage points faster next year than its current forecast of 2.7%, which was bumped up from 2% only a week ago. JPMorgan has raised its 2011 forecast (fourth quarter compared to a year earlier) to 3.5% from 3%.

Says nothing about it being solely from payroll and UEB, just overall compromise


Also, the $120B has a .7 to .8 effect on GDP if EVERY SINGLE CENT is spent.  Pretty dumbass assumption 06

[06wildcat]

Some stuff that shows 06 is full of cac (ahhh, the wonders of google)

The Economist
Goldman Sachs now thinks the economy will grow 0.5 to 1 percentage points faster next year than its current forecast of 2.7%, which was bumped up from 2% only a week ago. JPMorgan has raised its 2011 forecast (fourth quarter compared to a year earlier) to 3.5% from 3%.

Says nothing about it being solely from payroll and UEB, just overall compromise


Also, the $120B has a .7 to .8 effect on GDP if EVERY SINGLE CENT is spent.  Pretty dumbass assumption 06

Congrats you got my in a typo (3 is right next to 4, who knew?). Also the $120 billion is only payroll tax relief, it in no way accounts for .7 to .8 percent growth. It plus the extension of UE benefits, plus business being able to depreciate capital expenses in 1 year and the estate tax compromise and a few other things all added together account for those numbers. Reading comprehension is hard stuff. Might want to google that too.

Don't worry, Republicans blocked a 1-time Social Security payment of $250 to all seniors tonight preventing the expenditure of $14 billion. They're well on their way to paying for $700-800 billion that will need to be borrowed for this "deal".

[Sugar Dick]

Some stuff that shows 06 is full of cac (ahhh, the wonders of google)

The Economist
Goldman Sachs now thinks the economy will grow 0.5 to 1 percentage points faster next year than its current forecast of 2.7%, which was bumped up from 2% only a week ago. JPMorgan has raised its 2011 forecast (fourth quarter compared to a year earlier) to 3.5% from 3%.

Says nothing about it being solely from payroll and UEB, just overall compromise


Also, the $120B has a .7 to .8 effect on GDP if EVERY SINGLE CENT is spent.  Pretty dumbass assumption 06

Congrats you got my in a typo (3 is right next to 4, who knew?). Also the $120 billion is only payroll tax relief, it in no way accounts for .7 to .8 percent growth. It plus the extension of UE benefits, plus business being able to depreciate capital expenses in 1 year and the estate tax compromise and a few other things all added together account for those numbers. Reading comprehension is hard stuff. Might want to google that too.

Don't worry, Republicans blocked a 1-time Social Security payment of $250 to all seniors tonight preventing the expenditure of $14 billion. They're well on their way to paying for $700-800 billion that will need to be borrowed for this "deal".

   Pretty huge typo bro

Anyways, glad to see the Dems are finally implementing some Pro Business ideas.  More Section 179 expense, lower payroll taxes are all good ideas (which Repubs have been asking for for two years).  UEB is a joke, but gotta compromise to keep the Dem welfare state limping along.