The headline is that The White House is seeking $1.6 trillion in tax hikes, and will agree to $400 billion in Medicare and other cuts.
But there are 4 smaller things that Obama is pushing that are all good.
- A permanent end to the debt ceiling. Under the new plan, there would be a law change such that Congress has to vote to BLOCK a debt ceiling hike, rather than vote to increase it. The debt ceiling is a stupid idea, and preventing it from being a hostage tool is a great idea.
- An extension to the payroll tax holiday for another year (with 8% unemployment, this is still a justified stimulus, and we had not thought it was on the table).
- An extension to emergency unemployment benefits (same, good idea, justified)
- Some other modest stimulus including more infrastructure spending and mortgage relief.
Republicans don’t like, it and they’re reportedly balking at these things. But these are all good ideas, and it’s good that at the start of negotiations, all these things are being discussed.
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