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June 19, 2024

Clinton Approves Tax Cut Extension and Unemployment Benefits Extension Despite Financial Costs



San Francisco ( Friday, after speaking President Barack Obama in private in the White House, former President Bill Clinton spoke with reporters and fielded questions. The tax deal, which Obama struck with Republicans that would extend all Bush era tax cuts for two years, extend unemployment benefits for 13 months, reduce the payroll tax by two percent for a year, lower the estate tax, and extend the tax breaks as laid out in the 2009 Stimulus Package to students and their parents, was a groundbreaking deal between Obama and Republicans.

However, the deal was not well received by Democrats, who were adamant against letting the tax breaks be extended for those making at least $250,000 per year.

Clinton on the other hand, approves of the idea.

Clinton said, “I personally think this is a good deal and the best we can get.”

Clinton spoke about how even though the Republicans got their way in terms of the wealthiest Americans having their tax cuts extended as well, the Democrats were able to extend the benefits that will allow nearly two million Americans the ability to keep their homes as well as other benefits for middle class citizens hurting in these tough economic times.

Clinton maintained that the measures Obama succeeded in getting into the deal would be essential to make the American economy grow at the rate it needs to for a recovery to be made.

In response to the negative response by some Democrats over the agreement, Clinton said, “There’s never a perfect bipartisan bill in the eyes of a partisan. I believe this will be a significant net-plus for the economy.”

The main problem lies in the fact that while House Democrats do not want the tax cuts for the wealthy to be extended, the Senate Republicans refuse to agree to any extension that does not include tax cuts for the wealthy.

The agreed upon plan would add approximately $893 billion to the national deficit by 2016 according to statistics compiled by the Congressional Budget Office. Only $57 billion would be as a result of the unemployment benefits. The payroll tax reduction will add $225 billion of the near $900 billion to the deficit. And the extension of the tax cuts to all Americans is projected to account for $400 billion of the deficit increase.

With elite support coming from Obama and Clinton, some Americans are left wondering if come January 1st, will their taxes be rising dramatically, while others are wondering if the unemployment checks will keep coming in the mail as they seek work.

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