Daily Archives: 12/07/2010

(Community Matters) factoring payroll tax cuts and business tax credits into the wins of the compromise (continued unemployment insurance and middle class tax relief) is causing me to chill and read independent economists’ assessments.  The former two additions could be huge stimulus boosts to our anemic economy – exactly what we need to create some damn jobs.  As imprudent as extending the tax cuts for the wealthiest is . . .  still trying to understand this moving target

see this Economist blog posting

subsequent comments: Originally I found the compromise as distasteful as did other progressives. However, as economists and The Economist are now noting, the compromise includes several provisions which we’ve been wanting but have been unable to obtain otherwise (in addition to extension of middle class tax cuts and unemployment insurance) – additional, significant economic stimulus measures via a decrease in payroll taxes and an aggressive biz tax credit. They are expected to give our anemic economy a much needed boost, creating jobs for unemployed Americans.

It appears Pres Obama finally obtained what nobel-winning economist Paul Krugman has been calling for since 2009, more economic stimulus. Even the Wall Street Journal, the New York Times & the Economist think so. I’ve gone from a very loud opponent of the compromise to a cautious supporter

(Community Matters) So nice being back in KL. The view of Petronas Towers from our room

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(Community Matters) To be fair, there’s this:

The Economist: Did Barack Obama Lose a Political Battle But Win a War?

The initial reaction, in particular among liberal commentators, was that this was a political loss for Barack Obama, since he gave up more than the Republicans. I initially shared that view, but a colleague notes that this constitutes a loss only by narrow Beltway-based accounting. What will ultimately matter in 2012 is how the economy performs, not whose policies are responsible for that performance. If the economy is booming a year from now, Mr Obama may be seen to have lost the battle but won the war. In spite of their grumbling, the rest of the Democratic caucus may also benefit. As a correspondent notes, “This is a pro-incumbent kind of package. And Democrats have a lot more incumbents running in 2012 than Republicans do.”

(Community Matters) Disturbing data just received from my friend Ilyse Hogue at MoveOn.org

MoveOn commissioned a Survey USA poll last night of Democratic, specifically Obama, donors in 20 states before we knew the deal was being announced.

The poll shows that the President’s willingness to deal with the Republicans on the tax cuts will cost him politically. Here are some top lines:

• An overwhelming majority, 83% of former Obama contributors, oppose extending the Bush tax cuts for those making over $250,000 a year—70% of them strongly.
• More than 74% of former Obama contributors oppose the president’s making a deal with Republicans that would extend the Bush tax cuts for those making more than $250,000.
• More than half, 51% of former Obama contributors, say striking such a deal would make them less likely to contribute to the Obama re‐election campaign in 2012.
• Finally, 67% of former Obama contributors surveyed said they support extending tax cuts for those making less than $250,000 a year.

Here’s a link to the full polling memo: http://s3.moveon.org/pdfs/pollmemo_final_120710.pdf