Barack Obama gives way to Republicans over Bush tax cuts

[Lasher]

Allies say president 'blackmailed' into extending tax cut for wealthier Americans which may cost $4tn in lost revenue

Barack Obama is bowing to Republican demands to extend a deep tax cut for wealthier Americans, to the fury of some of the president's allies who say he has succumbed to "blackmail".

<snip>

The outgoing House speaker, Nancy Pelosi, is reported to have expressed deep unhappiness at the deal, saying the White House gave in too easily to Republican pressure. Richard Durbin, the second highest ranking Democrat in the Senate, said the agreement to extend the tax cuts for the wealthy was "against my judgment".

Paul Krugman, the Nobel economics prize winner, called on Obama to stand firm against the Republicans' "tax-cut blackmail" which will cost the US treasury $4 trillion in revenue over the next decade and prompt a "major fiscal crisis".

http://www.guardian.co.uk/world/2010/dec/06/barack-obama-bush-tax-cuts

[Mimosa]

1. Is this a done deal? n/t

[CakeGrrl]

2. These are the details that would have to be approved by the House

Which was probably the reason for today's meeting between POTUS, VPOTUS and House Dems:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x545288

Unrec for redundant doomsday spin on the development.

[Lasher]

5. I'm sorry you find this development unworthy of discussion.

It is disingenuous to characterize my OP as 'doomsday spin'.

[CakeGrrl]

6. This isn't the first thread started about this. All I'm saying. n/t

[Ikonoklast]

9. Done deal like the 'Catfood Commission' no one is talking about now.

[Kaleva]

3. That 4 trillion assumes tax cuts for the middle class are made permanent

The loss in tax revenue over a ten year period of time is 700 billion from the wealthiest and 3.3 trillion from the middle class.

[Lasher]

4. That is a very good point.

Many people are missing the point about how expensive the tax cuts are for people making less than $250K.

Thanks,

Lasher

[Kaleva]

7. My preference is to let the tax cuts expire for all

That 4 trillion would go a long way in helping to lower the deficit.

[Lasher]

8. I agree

Actually the Bush tax cuts are the biggest single reason for our deficits.