In tax deal, Obama didn't secure as many "concessions" as advertised [View All]

[nashville_brook]

http://fdlaction.firedoglake.com/2010/12/10/in-tax-deal-with-gop-obama-didnt-win-as-many-concessions-as-advertised/


Payroll Tax Cut – There is little reason to believe Republicans would not have supported this as a stand alone bill. A payroll tax cut was an idea McConnell supported last year along with the conservative American Enterprise Institute. This accounts for half, $112 billion, of the spending the Obama apparently “got” from the Republicans.

Child Tax Credit – Rachel Maddow noted that extending the Child Tax Credit was part of the Republican “Pledge to America.” In 2008, John McCain campaigned on doubling the child tax credit. Including this in the tax dea is not a concession, that is helping Congressional Republicans fulfill their promise.

Temporary Extension of Investment Incentives – The extension of bonus depreciation and increase in small business expensing are “pro-business” ideas popular with Republicans. Bonus depreciation was a feature in several bills that George W. Bush signed into law. There is no way to consider this as $22 billion Obama “got” from Republicans.

Earned Income Tax Credit – Republican President Ronald Reagan supported and greatly expanded the earned income tax credit. During the 2000 campaign George W. Bush opposed cuts to the earned income tax credit. American Enterprise Institute President Arthur Brooks said the Earned Income Tax Credit is an example of a program that “rewards work and earned success.” There are Republicans who oppose it as “Welfare,” but it has not been anathema to the party.

It is also important to remember the EITC is a permanent policy, the deal only includes an extension of a modest expansion of the EITC. If a concession, it is a fairly minor one by Republicans.

American Opportunity Tax Credit – This College tax credit was an idea Obama campaigned on and was part of the stimulus bill. He can count this as a real concession.

One-Year Extension of Unemployment – Republican didn’t want to pass an unpaid-for extension of unemployment for a full year. This can be called a win for Obama, but it should be noted that Republicans were not prepared to take the blame for cutting people off in this economy. Sen. Chuck Grassley (R-IA) admitted as much when he said that, even without this deal, the Senate would have approved a brief unemployment extension.