San Francisco (Obama.net)- After much debate for the last few months, Republicans and Democrats finally came together one two issues where for a long time it looked like neither side was going to budge one bit.
Monday, President Barack Obama announced the new historical deals.
Obama told reporters that the tax cuts issued by President George W. Bush during his presidency would be extended for two years. Tax breaks from the stimulus package last year will also be extended for families and students. Small businesses will be able to report the investments they make in 2011 as write-offs in their taxes as well.
Also, the unemployment benefits from the 99 Weeks extension will be extended another 13 months. In addition, for the next year, the payroll tax will drop by 2%.
Both Republicans and Democrats had to compromise on the matters that were worked out with the assistance of the Treasury.
Obama said that the compromise was made because it is in fact what is best for the United States at this time. Obama said, “We cannot play politics at a time when the American people are looking for us to solve problems.”
One unfortunate side effect of extending the tax cuts and unemployment benefits is the hit that deficit spending will take. According to Obama, trillions of dollars will be needed to accommodate the tax breaks and the benefits plans.
Democrats were not very pleased with the announced agreement. Many, like Ohio’s Sherrod Brown, contend that the final plan favors the Republicans vision more than it does Democrats.
However, Obama is adamant that for the best interests of the American people, the tax cuts and the benefits must be extended. The President of the United States said, “I know there are some people in my own party and in the other party who are willing to let this fight continue. I’m not willing to les us slip backwards just as we’re recovering from this devastating recession.”
Both sides had to give up some principles in the compromise.
Democrats had to allow Republicans to extend the tax cuts for Americans making over $250,000 per year. And Republicans had to agree to the increased spending by Democrats on the payroll tax cuts and the unemployment benefits.
President Obama made it perfectly clear, “We’ve got to make sure that we are coming up with a solution even if it is not 100% of what I want or what the Republicans want.”
The compromise now goes to the United States Senate for approval.
Do most people think this is a good move or a waste of money?
Thank you, President Obama, I can now afford to put food on my table for my wife and beautiful 19 month old daughter and pay my rent for a little longer as businesses in my city continue to not hire.
Do you think that my being able to feed my family in an economy I had NO HAND in destroying is a waste of money, Sarah?
My opinion is this: People who cannot secure work are going to just end up on Welfare if they cut unemployment out from under them. And we’re not even talking about people who never worked a day in there lives, we are talking about people who lost their jobs (jobs they held for 5 fiscal quarters, paying into their unemployment insurance like good Americans) and unfortunately landed in the middle of this cutthroat job hunt.
Argue politics all you like, just let me feed my family first. Otherwise some of you people who take your secure jobs for granted may realize just how hungry your less fortunate peers are…
They denied it so there won’t be a extension
I really hope they extend the unemployment benefits. If they don’t I don’t know what I will do. There are no jobs around here and I have bills to pay. I am really scared right now and have never felt so helpless.
My understanding was that this was not an additional 13 months for those of us in the last tier, about to run out of benefits. This was just a blanket vote for extensions for the next 13 months to avoid regular monthly, or whatever, voting to allow 2-4th tiers to continue. For my family, and those like it, with not jobs available there is nothing left but welfare and homelessness.
I have been looking for work, enrolled in college, and tried to improve my chances at employment to no avail. With my benefits expiring on Jan. 11 I do not know how I will even continue to take courses, much less pay for food for my family. I do not want to be unemployed or on any sort of assistance. I want a job, but none are available within an hour or two drive.
What are the long-term unemployed going to do once the 2 year cap is reached? If I have to live in my car, I do not care, but I do not want my wife and 5 year old son to suffer the same fate. The sense of failure all of us who have never had trouble getting or maintaining a job feel after being unemployed for so long is overwhelming. Extending unemployment for those of us that are at least trying to improve, through training or college, would at least lift the burden of homelessness from our family’s backs.
OBAMA MADE A GOOD DEAL TAX CUTS EXTENDED 2 YEARS, UNEMPLOYMENT BENIFITS EXTENDED TWO MONTHS.
FOR PEOPLE WHO OWN A HOUSE WE SHOULD PERMANENTLY ELIMINATE THE PROPERTY TAX BILL. THUS, IF A PERSON PROPERTY TAX IS 2000 DOLLARS AND UP A YEAR THEY WILL NEVER HAVE TO PAY FOR THE REST OF THEIR LIFE. THIS WILL PUT MONEY BACK INTO THE MIDDLE CLASS AMERICA POCKETS AND WE CAN SPEND SOME OF THIS MONEY AND PUT IT BACK INTO THE ECONOMY.
SECOND LOWER THE COST OF APARTMENT RENTS, THEN THE PEOPLE THAT LIVE IN THEIR APARTMENTS, CAN HAVE EXTRA MONEY TO SPEND.
THEN LOWER THE COST OF FOOD BACK TO THE 1960 PRICES.
FOR SMALL BUSINESSES ELIMINATE THEIR TAXES FOR LIFE
AND FOR PEOPLE WHO SERVED IN THE MILITARY NO TAX FOR THE REST OF THEIR LIFE AND NO PROPERTY TAX FOR THE REST OF THEIR LIFE.
Elizabeth,
I am planning on joining the Marine Corps. The idea of never needing to pay taxes for the rest of my life sounds great. As it stands, military members pay relatively low taxes as much of our pay is in the form of tax exempt ‘fringe benefits’ such as health insurance, housing, and small food and clothing allowances. From my perspective, cutting out taxes from military members altogether would be a little bit on the extreme side.
As far as lowering the cost of rental housing and food, that is a decision left up to the collective supply and demand in the market place.