Tax cuts: Costliest stimulus, weakest payoff

[niceypoo]

The tax package passed by Congress has a bigger price tag than any other economic stimulus in history, but not much bang for all of those bucks.

The Congressional Budget Office estimates that the package has a total price tag of $858 billion, topping both the $700 billion Troubled Asset Relief Program, which bailed out the nation's banks and automakers, and the $787 billion stimulus signed into law in February 2009.

...

The package was sold as a form of stimulus, which supporters of the measure argue is necessary to keep the still-struggling U.S. economy growing.

But many economists say it will drag the country deeper into debt, while doing little to spur growth.

...

http://money.cnn.com/2010/12/16/news/economy/tax_cuts_economic_impact/

By the numbers
Extending the Bush tax cuts is the costliest proposal in the measure, but returns just 10 to 40 cents on every dollar spent, the CBO said. So does granting relief from the AMT, which is the second-largest expense in the bill.

Extending the Bush tax cuts for another two years will cost $330 billion, while the AMT fix costs another $136 billion, resulting in a combined loss of $280-$420 billion.

Tax breaks for employers investing in plants or equipment returns between 20 cents and $1.00 for every dollar of lost revenue. But it is among the smallest tax proposals in the bill, costing about $21 billion over the next 20 years. And many economists question whether it'll do any good, since business are still reluctant to spend their cash.

[stray cat]

1. Unemployment is the best stimulus - but since it was a package we would not have it either

[ProudDad]

9. Actually, it is NOT...

Creating living wage jobs is...

[dkf]

2. Some complain this group didn't get enough while others grump that nobody should have got it at all.

And still others grump we should have let people suffer to provide leverage.

Sigh.

[niceypoo]

3. It isnt 'who gets what'

It's about the fact that tax cuts caused the mess we are in and more tax cuts will keep us here.

[ProudDad]

10. Bullshit

You won't find ANYONE on this board...

Who wanted ANYONE to suffer...

Except the rich fucks who've been robbing us blind!...

FAIL!!!

[dkf]

15. They don't WANT people to suffer for leverage, they are willing to LET them suffer.

Which is what I said

[ProSense]

4. From the OP: The tax cut with the potential to do the most for the economy

...is the payroll tax holiday, which will cost about $114 billion, and is estimated to be a fairly effective way to pump money into the economy, returning between 30 to 90 cents to the dollar."

It's likely "costliest stimulus, weakest payoff" is because the tax cuts for the rich are lumped in.

[ProudDad]

12. BULLSHIT

A living wage job is the best stimulus...

And serving up Social Security as a bargaining chip is the 2nd worst thing that execrable Obama has done...

Next to his murderous wars...

[robcon]

5. A tax cut is the best stimulus. Faster, stronger impact.

This was not a tax cut... it was a delay in a tax increase. Net effect, IMO=0

[niceypoo]

6. Here is the entire CBO stimulus collection

Show me a single report that agrees with your statement that, "A tax cut is the best stimulus. Faster, stronger impact." I guarantee you it doesn't exist. You are repeating a supply side GOP talking point.

http://www.cbo.gov/publications/collections/collections.cfm?collect=12

You can quickly go through the reports by using ctrl + f and typing whatever keyword you are looking for.

[Exilednight]

7. Rush LImnbaugh said the same thing. Tax cuts are the worst stimulus and we have decades of

history to prove it. At no time have tax cuts ever stimulated the economy, and plenty of presidents have tried.

[ProudDad]

13. ronny ray-gun BULLSHIT

If the last 30 years have shown anything it is that TAX CUTS ARE NOT STIMULUS!!!

THEY DON'T FUCKING WORK!!!

Stop spewing right-wing BULLSHIT!!!

[slackmaster]

8. Unemployment returns up to $1.90 per dollar, so clearly we should put everyone on unemployment

:crazy:

[ProudDad]

14. Well, if that's what you want to do, go ahead and continue

Those of us who care about people would rather see that everyone has a living wage...

[mtnsnake]

11. Tax cuts like this have made us the country we are today

DEEP IN DEBT and on the verge of total collapse