Congress Passes $858 Billion Tax-Cut Extension Plan

[littleroc02us]

Despite a split Democratic vote in the house, the majority of Republicans and President Obama constructed and passed the tax-cut extension plan. I am very proud of this bill getting passed and although it isn't perfect I agree as to why it was and that compromises had to be met.

The only thing about it that concerns me about the way the media is wording it, they say that it will add $858 billion to our nations debt. I'm trying to think about that statement logically, but am having a hard time understanding. So, if you cut peoples taxes and they are able to get more income in their pockets to spend as consumers, how is that a debt to our nations checkbook? Shouldn't they word it as "the revenue will be reduced by x number vs. it being a debt. In my mind it would be like me getting a reduction in salary, so that would require me having to cut back on my expenses to live within my means. Is the US govt and media saying this because they want to keep their expenses the same and not balance their checkbook? Somebody please explain to me how a loss in revenue (tax cuts) equals more national debt?????

[snshijuptr]

The bill has both a loss of tax revenue and an increase in expenses through unemployment extensions. The government does not cut back on it's expenses just because it loses revenue. Like most of it's citizens, our government sees all of it's expenses as necessary because to someone they are! If we cut farm subsidies, it hurts farmers. If we cut education subsidies, it hurts students and teachers. If we cut subsidies to the arts, it hurts painters, dancers, and administrators at museums. Remember cutting spending is always, always a case of NIMBY. Someone is benefiting from the subsidy otherwise it never would have been passed through legislation.

[littleroc02us]

Originally Posted by snshijuptr

The government does not cut back on it's expenses just because it loses revenue.

Just think about that statement for one second. Is that not the most ridiculous idea ever. Imagine if we all used the same concept of finances as the gov't. Oh wait alot of people already do. It's such a joke. To bad the Gov't doesn't have the "--lls" to just say "NO!!!!"

[creditcardfree]

Many expenses with the government automatically increase each year regardless if it is needed. This includes military pay raises, which has to at least match the ECI (Employment Cost Index). This year it is 1.4%. Often congress tacks on additional raises, but this year no.

I should complain, but it is my husband's paycheck...so I'd rather any cuts come from somewhere else.

[snshijuptr]

Originally Posted by creditcardfree

I should complain, but it is my husband's paycheck...so I'd rather any cuts come from somewhere else.

And here is where the problem lies. We should be making cuts where needed (except in Education, because that's our paychecks )

[cjscully]

This bill is a mixed bag of positives and negatives. Is it necessary? I don't really know. A lot of people seem to think so.

What I do like - No income tax increases.
What I don't like - More spending, more paying people not to work.