Just some perspective of "Framework" for the Tax Cuts Deal

Yesterday, President Obama talked about the framework for the Tax Cuts deal. Basically, it could mean that the Bush Tax Cuts will be extended for 2 years, but unemployment benefits will be extended for 13 months (the largest extension in history) and a 2% cut in the employee side of the payroll tax for one year, and a some of the expanded tax credits included in the 2009 Recovery Act.

But I wanted to state that this is a "Framework", meaning none of this is set in stone. More changes could come before the unemployment benefits are over (in 3 months). I know folks are upset and mad about this supposed deal, however this deal could help over 150 million people.

Think Progress has the scoop

For comparison’s sake, The Wonk Room has a chart detailing both the number of people (in millions) who benefit from each side’s priorities, as well as the total cost (in billions). Obama’s components of the tax deal (extended unemployment benefits, the payroll tax cut, and the extended credits) will cost $214 billion to aid 156 million people. The Republicans priorities (extending the Bush tax cuts for the rich and cutting the estate tax), meanwhile, will cost $133 billion, but only benefit roughly 4.8 million people.

So, in order to get desperately needed help for the long-term unemployed and to provide the middle-class with tax relief in a weak economy, Obama agreed to tax cuts for a small, wealthy portion of the population that the Republicans were willing to go to the mat for, even if it meant that everyone’s taxes went up if the Bush tax cuts expired. Excluded from this analysis is extension of the broad-based Bush tax cuts, on which everyone agreed. The total package will cost about $900 billion over the next two years, entirely financed through deficit spending.

I hope this helps a little. Again, these are tough decisions. Both groups are not truly winners, but hopefully, the 156 million will get the help they really need.