S & P Does Not Believe The Bush Tax Cuts Will Expire In 2012

[Bill USA]

http://www.businessinsider.com/sp-does-not-believe-the-bush-tax-cuts-will-get-lifted-in-2012-2011-8


S&P Does Not Believe The Bush Tax Cuts Will Get Lifted In 2012


A very interesting line in http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8">S&P's full report (.pdf) wherein it downgraded the sovereign debt of the US from AAA to AA+.


Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.

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[Blue Owl]

1. well well well...

wait, make that:

...well well fucking well...

[bowens43]

2. There has never been any doubt that these cuts are permanent.

Obama will not allow them to expire

[daa]

3. +1

[Name removed]

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[Name removed]

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[Bill USA]

13. The GOP are the ones fighting to keep Obama from NOT extending the Bush tax cuts for upper income

brackets. Obama has stated repetitively that he wants increased revenues as part of a deficit reduction package. Obama has stated numerous times that he does not think the Bush Temporary tax cuts should be made permanent for the income categories above $200,000 (single return) or $250,000 (joint return).

To say that "obama won't let them expire" is to deny reality.

What is known, not only to Standard and Poors, but to everybody else, is that the GOP want the tax cuts for the income brackets mentioned above, to be made permanent.

Obama wanted to only extend the tax cuts for those below the $200,000 bracket and was forced to also extend the Bush tax cuts for those in the categories mentioned above by the GOP who threatened to NOT LET the Unemployment extension bill pass, if Obama did not also extend the tax cuts for the $200,000/$250,000) brackets.

Your assertion runs counter to known facts. Your statement ("Obama will not allow them to expire")
is nonsense.

[pscot]

18. Isn't expiration automatic?

Wouldn't Obama have to sign a law passed by both houses to continue the tax cuts? If they can't continue without his signature, why does S&P assume they will be kept.

[BiggJawn]

20. Because the GOP will want the cuts as a ransom

For their next hostage taking.

[Recoverin_Republican]

15. as a too-long member of the "suckers club" (non-millionaires voting Republican) I recognize this bit

of anti-"reasoning".

I was, for too long, a sucker until a few years ago (after the GOPers were saying "the deficit don't matter" and then then came the Housing Collapse, the credit Catastrophe (both thanks to a lack of regulation or outright deregulation), and the resulting very DEEP 'recession' we are now in. I can recognize, in this comment (no. 2), the gambit people I knew (well, still know) would use whenever their arguments or allegations were disproved by the facts, four ways from Sunday. They would be dumbfounded and silenced for a second or two, and then they would recover, take a breath, and just keep repeating their BS inspite of all the facts that had been marshalled against them.

They would just keep on insisting the moon was absolutley made of green cheese (or whatever) and just deny reality. This is what comment no. 2, is all about. The statement makes no sense, runs counter to all evidence, but the idea is, just say it with conviction .... and pretend you really believe it.

Yeah, I remember this from my days in the "suckers club". Too bad it took me so long to figure out I was getting screwed. Well, better late than forever a sucker.

[FiveGoodMen]

4. Neither do I.

[jwirr]

5. And this is why they downgraded. They were telling the rethugs to

get behind the work of fixing the economy. Raise taxes and pay the bills. I do not know if this message goes so far as to recommend that money be spent on jobs programs though so the rethugs will probably continue to obstruct the ideas in that area of the economy.

[bvar22]

6. The "temporary" Payroll Tax Cuts..

..are also PERMANENT,
unless you see Obama & The Centrists Raising Taxes in an election year.
After that,....well, "letting them expire will hurt the recovery." LOL

Its ALL Joe Lieberman's fault,
and We'll Fix it Later!



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[Bill USA]

8. I guess you can continue to suck your thumb, shove your head up your butt and ignore reality

but it doesn't make for a practical approach for dealing with reality.

[JohnWxy]

9. Well, S&P put it in print so their would be no doubt about what went into their reasoning. It's a

another economic bomb thrown by the GOPers.

recommended!


.....wonder if this will be mentioned by anybody on GOP media (FauxNews, NBC, CBS, PBS, ABC)? (LOL. just kidding).

[Igel]

12. Yes, they did.

And this was out late Friday night or early Saturday morning.

Oddly, it didn't seem to matter. This is the $2 trillion "math error" that everybody keeps repeating. Even when it's pointed out to them in writing, it's like the McGurk effect--the readers see one thing while hearing another and they interpolate between the two in a weird way.

You can only seriously consider it a math error if you don't bother to read what S&P said. They were quite explicit, absolutely up front that they had a variety of assumptions that went into the projections that formed the basis of their evaluation.

You can call it a math error, but to do so either shows one of a limited number of things: Either you didn't bother to read it, that those who read it didn't understand it, or that they understood it and decided to engage in hyperbole sufficient to make listeners infer a falsehood. None of them show incredible brilliance, and some don't appear very adult.

[JohnWxy]

19. the M$M would much rather call it a math error than quote S&P that they assumed GOPers would protect

the Bush tax cuts for the top income brackets by forcing Obama to make them permanent.....


"We have changed our assumption on this because the majority
of Republicans in Congress continue to resist any measure that would raise
revenues, a position we believe Congress reinforced by passing the act."__S&P report

[GOTV]

11. Well, they didn't expire last time they were supposed to either.

[Bill USA]

14. in an attempt to keep the REPUBLICAN DYSTOPIA from becoming the Second Great Depression Obama tried

to extend the Bush tax cuts for everyone except those in the $200,000 (filing singly) or $250,000 (filing jointly)
income brackets, in order to not give up the revenues from the people in the higher tax brackets. The point of this is that people making less than $200,000 a year are going to spend most of any additional income they get from a tax cut, while those at $200,000 and above will not spend as much of any additional income as those in lower brackets. Thus, you get a bigger bang (demand support, in the private sector) for your buck (of revenues given up) with taxpayers making less than $200,000 annually.

Obama, wanted to do it this way, but the GOP indicated they would NOT LET a bill to extend unemployment benefits pass unless Obama also extended the bush tax cuts for everybody, including the reasonably well off and the wealthy. Obama knew he could not win out aganst this bit of extortion because if unemployment benefits were NOT extended the economy would quickly nose-dive and this REPUBLICAN DYSTOPIA would quickly become the second Great Depression. This is how the GOP got the tax cuts extended to the highest income tax brackets. Obama didn't want to do it that way. He had it extorted out of him by the Corporate Lobbyists Party.

[bergie321]

16. Obama Could Easily Stop Them

It's called a Veto. He needs to learn how to use it.

[Bill USA]

17. he would be consigning us to the second Great Depression if he did that.

If he had dealt with them as he should have from the beginning, it could be different. But correcting course now, even if he realized he's been wrong, may not really be possible. The GOP have tasted blood, their tactic of extortion, putting first the economy, then the Government's credit rating and the economy at risk, has worked so well for them. It has worked very well BECAUSE Obama apparently is unable to see them or unable to deal with them as they really are.

He seems unable to see they don't believe in anything. They don't have a governing philosophy. All they have are tactics. Obama seems to have a tape in his head that says: "Despite everything, I believe that GOPers are really good at heart."