The bill wasn’t negotiable, until… it was. On the main points, the tax bill introduced by Harry Reid last night contains the main points outlined by President Obama – a two-year extension of the Bush tax cuts, a two-year extension of the estate tax at drastically low rates, a 13-month unemployment insurance extension, several refundable tax credits from the stimulus, and a payroll tax cut of 2%. But a whole host of tax extenders also made their way into the bill, particularly on the renewable energy side.
I speculated yesterday that something like the Renewable Energy Grant program would have to get into the bill to give a “victory” to skeptical Democrats. So far, that specific program hasn’t made it, although lawmakers are pushing for that hard – 17 Senators and 81 Congressmembers signed a letter to that effect Thursday (UPDATE: it does look like the grant program is in there). But what is there includes extensions of tax credits for energy-efficient appliances and homes, nonbusiness energy property (like windows), ethanol (at the same rates as before; there was thought this would be reduced), wind and solar energy production, biodiesel, and more.
There are dozens of other small tax extenders in the bill. Most of them look familiar from the old “tax extenders” bill of the past year, though I’m sure there are a couple surprises. You have things like deductions for primary and secondary school teachers for supplies, tax-free distributions of retirement accounts for charitable purposes, an employer wage credit for employees who are members of the armed services, a railroad track maintenance credit, subsidies for commuters, a research tax credit, the American Samoa economic development credit, a “Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico,” and much more. None of these are particularly large, but the bill has become something of a Christmas tree, fitting for this holiday season. Reid did not, as far as I can tell, sneak the provision on legalizing online poker into the bill. Maybe next omnibus.
The bill has been scored as well. It would increase the deficit by $857 billion over 10 years, with pretty much all of that coming in the next 2 years. $801 billion comes from the tax extensions, and $56 billion from extending unemployment insurance.
The Build America Bonds program, which has become a huge source of lending for municipalities, did not get renewed by this bill.
The President predicted the bill would pass, and in the Senate that’s probably true; the first cloture vote will come on Monday. But members of the House remain angered by the deal, shouting “Just say no!” in a caucus meeting as they voted against bringing the bill to the floor. It’s unclear whether the energy sweeteners will be enough. However, for historical reference, the changes that put TARP over the top included – extensions of expiring renewable energy tax credits.
UPDATE: Dave Roberts says that the constant one-year extension of things like the renewable energy grants is no way to run a country, and produces significant uncertainty (there’s that word) for the industries involved.




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No help for the 99ers but an unspecified energy provision which might just be more subsidies to Monsanto and agribusiness, have I got that right? Well I’m glad they’re fighting for me anyway. Bastards.
Shorter O: We’ll get real serious about the deficit as soon as you pass this pile of goodies. Promise.
I don’t understand how this is supposed to be a win for Democrats at all.
I am going to repost my comment from Baker’s post because I think it bears repeating:
I came to a similar conclusion, but I think it is even worse. I don’t think the GOP actually made any concessions here at all. In other words, these are all tax cuts they largely support, and they were were always going to support the limited UI extension, as even Chuck Grassley admits. The child credit, the earned income tax credit, the equipment depreciation, these were all added to the original stimulus to sweeten the pot for Republicans rather than direct spending measures. The estate tax also sets us up for a permanent giveaway to the wealthy, when in fact Democrats were supposed to retroactively fix the estate exemption for this year. And, let’s remember, because Obama traded away the Making Work Pay credit for the payroll holiday lower income families actually fair worse off.
So now what? Their big concession is ethanol subsidies? I think the President was very clever here. He brought expectations down so much that it appears the GOP made some concessions, but if you really study this thing it’s hard to find them. On the contrary, I would expect a similar package of tax cuts from a Republican President.
I understand that Bernie Sanders has a few words to say shortly.
Margaret it is your own bloody fault that you are not a agri business multi billionaire. We all have an equal opportunity donchaknow.
Another Cornhusker Kickback, but the right doesn’t seem to be kicking about Ben Nelson this time. Ethanol is inefficient, bad for the environment and uses a food crop for fuel.Always a bad idea and should lose subsidies. Subsidize algae of some other alternative form, but corn is food.
Energy provisions? That certainly offsets the tax giveaway to the rich and the estate tax generosity! I’ve changed my mind, count me on board! /s
Vote No. Why even help Obama anymore? He has given away so much to the R’s already, there is nothing left to give them. The President has made himself so weak, he cannot pass START, nuclear arms control. Of course, Obama could give them Social Security.
Just treat Obama as you would a President McCain. Except McCain is smarter.
Renewable, shmooable, case closed. Major Democratic players sitting in both Houses and in the WH have been outed. They’ve been and continue to be, along with their Republican counterparts, bottom feeders.
Projection: Come January, with tax legislation off the table there will be a return to a great renting of garments over the size of the debt/deficit. Solution, cut federal spending – think Social Security, EPA, NEA, Education, Medicare…Obama etal have signed, sealed and delivered their pact with the Devil. The 98% out here can look forward to at least two years of austerity while the 2% of us can look forward to reaping the benefits of our imposed austerity. I’m pissed as hell.
I’ve heard that. I’ve also heard the the Earth was 6,014 years old last October 23.
What does this mean exactly, that there would be breaks extended to the producers of wind and solar energy? If so, how many producers of solar panels are left in the US after Obama’s been turning a cold shoulder toward them since taking office?
Indeed.
It’s all ready started. The House Dems just passed an austere government funding bill that freezes all current department budgets.
All of the talking head apologists bought and paid for by the oligarchy, laughingly referred to as moderates, are, to a man and a woman, supporting Obama for selling out the middle-class in favor of the rich by praising his tax compromise. Most of the media savvy progressives (liberals) who oppose the “Obama Compromise” are being shunned, as usual, by the news outlets. A free press my ass. Peace
The hooker Senator Shortride hired to spread her legs to defend the Homeland just flew the coop.
The calendar was part of the creation?
Again a comment from 6:o’Clock this morning
And this
No, apparently that came from the Ussher Chronology.
Now the bill has so much pork the fat is dripping out. And we’ll be seeing the back fo the hand sooner rather than later:
Making Disabilty Workby….guess who? Peter Orzag;
who, coincidentally is leaving for a job With Citi
Grotesque
According to which, we shouldn’t be able to see this, which is 8,000 light years away. This little feature shouldn’t come into view until somewhere around ad3996.
The hooker did her job. Shortride is pleased. But the memos documenting treason by Shortride did not disappear.
They will,,,they’ll take it out on Social Security which I have seen this from the start as being the true purpose of ( bad sentence, I know) Now that Oilbomber’s catfood commission failed, he’s trying to get US in so much debt, why they’ll just HAVE to make the old and the poor and disabled suffer….some more.
There WAS a rumor that they were CIA plants…….way back in the beginning
The article is fascinating.
This DINO President claims that if we extend the tax cuts for the rich by two years, he will fight against another extension in 2012. Who is he trying to kid? The Republican congress will pass a bill making these cuts PERMANENT, then dare Obama to veto in an election year. Anyone can guess how that will come out!
If these tax cuts are extended, get ready to kiss your Social Security and Medicare goodbye.
The charges of “rape” against Assange is classic COINTELPRO. Smear the target with the worst charges, insteadof admitting it is a “political crime”. That is what neo-cons call Bushie Torture and False Flag crimes, political crimes.
US government policy means the Wikileaks revelations of criminality are ignored. Dyncorp continues its long practice of child sex slavery. This was known to the government and taxpayers are paying for sex slaves. Is Eric Holder going to prosecute Dyncorp?
They’ve already done that by cutting the payroll tax by 2%. SS is already in shortfall and by stealing another $200 billion from it in the next two years the situation will become far worse. They will then begin to provide it with money from the general fund to pay off the shortfall. The Congress can cut the general fund monies from any program at any time they’d like. Peace
Oh My! Just getting online and I see that nothing has changed for the masses. Wow! All that posturing in DC and nothing to be seen for the taxpayers that make under 5 million a year.
I guess Nancy Pelosi really has ignored my letter about the 99ers. She could care less! I’m ready to start calling the tent cities and car/home parks the Obama/Democratic societies.
Vintage Democratic Senate bullshit. Give billions to the rich, throw a few crumbs to the rabble to placate them. Any takers?
There aren’t even any crumbs. Except for incomplete UI benefits, which have never before been a bargaining chip, there’s nothing in this piece of shit for the common person.
In the meantime, corporations are sitting on huge pools of money yet will not invest in the American worker. They want to keep us as those “HOSTAGES” until the Dems come around to their point of view.
Exactly. Again, I can not see one provision here that the GOP “compromised” on.
Margaret, going on 4 days now since I sent Pelosi the letter. Still, no response.
Don’t hold your breath. You’ll asphyxiate and we need your voice.
“Dec 10 (Reuters) – The U.S. House of Representatives will likely pass next week, with some changes, the framework of President Barack Obama’s plan to extend tax cuts, a senior Democratic aide said on Friday.
The aide said before they vote, House Democrats aim to tighten estate tax provisions that are in a proposed Senate version of the plan.”
Whatever happen to “just say no” – let the Bush cuts expire and force the GOP to justify the $4 trillion addition to the deficit.
Nope. Not one.
It was always just a dance. This was set in stone before the elections.
True – General Funds are welfare funds to the GOP so SS becomes welfare and can be killed and replaced by separate accounts.
The GOP fellow actually said the above in the last 48 hours (per Tom Hartman).
“Obama could give them Social Security”
What do you mean “could“?
The “payroll tax holiday” is a trojan horse intended to do exactly that.
I agree – we would get a better package in the next Congress from a GOP controlled House that had to compromise with deficit hawks and the need to seem at least a bit humanitarian on Unemployment.
So the deal, giving tax cuts we can’t afford, was made in return for tax cuts we can’t afford, and in order to gain some more votes they add in more tax cuts we can’t afford.
Boy, I wish I could make some money. Then I wouldn’t have to pay taxes.
The only “compromise” that makes extending tax cuts to the assholes that caused this mess worth it is SINGLE PAYER HEALTHCARE, free or nearly free at point of service. Period.
You can put all the other bullshit renewable this and renewable that into you want and it is STILL completely impossible to morally justify not only NOT holding the rich accountable for what they’ve done, but actually reward them with more tax cuts. No, ONLY compromise that would justify that would be ending the 45,000 deaths a year due to no health care TODAY.
Fuck this bill and those who support it.
EDIT: PS, and truth be told, even this compromise would be a close call. Instead of more tax cuts, what we need is to see several hundred of them do perp walks. THAT would do more to fix the economy going forward than any of this crap. Because if you’re not going to hold anyone accountable for what’s happened, including the disgusting mortgage fraud crisis, then you’re simply holding up a sign saying “Do it again in the future anytime you want to”
Assholes.
Am I reading to much into the legislative language? What do the words “to the extent possible” mean relative to the amount of money placed into the trust fund from the general fund?
To the extent possible….
22 (1) TRANSFERS TO FEDERAL OLD-AGE AND
23 SURVIVORS INSURANCE TRUST FUND.—There are
24 hereby appropriated to the Federal Old-Age and
25 Survivors Trust Fund and the Federal Disability In
1 surance Trust Fund established under section 201
2 of the Social Security Act (42 U.S.C. 401) amounts
3 equal to the reduction in revenues to the Treasury
4 by reason of the application of subsection (a).
5 Amounts appropriated by the preceding sentence
6 shall be transferred from the general fund at such
7 times and in such manner as to replicate to the ex
8 tent possible the transfers which would have oc
9 curred to such Trust Fundhad such amendments
10 not been enacted.
If you put enough hollandaise on a turd, it tastes great!
Now that more hostages have been lumped in, I’m even more enamored.
See, if you don’t vote in favor of "Turd in Hollandaise Deluxe", you hate renewable energy, baby seals, and Jesus.
I know this will get passed. But, we can make the kabuki dance so unpleasant for those congressional dogs that they dread having to tow the line.
Most politicians, and I think Senators in particular, do not care for anything other than themselves. They act and vote from the perspective of personal gain, not public gain. Therefore, their statements for or against any particular vote, their public reasons for voting a particular way, are just as fake as their feigned compassion for others.
With that in mind, I think it is probable that politicians despise the kabuki dance they must perform to the public, the same public they care nothing about (beyond re-election). Ultimately they will come to despise the public as much as the kabuki.
So, make the dogs dance! It’s all we get from them anyway. Make the consequences of going against the public interest require a kabuki dance to rival the dance of the night sky! We’ll still get screwed, but at least we’ll get some better entertainment value out of the deal.
Nice catch. It looks like a gigantic loophole to me.
Of course this will pass.
Grandma’s boss, Mrs Howard Wolfson, CoS for Grandma, will make sure it passes . All this was run thru the Glover Park Group/ Elmendorf Strategies,
and their overlords, the bankers
The progressives have been played like a cheap violin
Not taking enough money from citizens adds to the deficit?!?!?!?!
Yep, that’s right it does, although obviouslyh reality is a hard for you to understand.
Here’s the reality.
The current tax law is X.
That’s the current law. No changes means that’s the law. We’re all citizens and bound to follow the law. Therefore, under current law, we owes X dollars under X rates because that’s THE LAW. If you want to change the law to Y, then that CHANGE means that OUR government gets either LESS or MORE dollars, depending on the change. In this case, they are trying to change Law X to Law Y where it means OUR government gets fewer dollars. When our government gets fewer dollards then the current law calls for, that increases the current deficit.
It’s really not all that hard, except for people like you.
This is horseshit. If the House passes this I’ll have to think their opposition was just a bone tossed to liberals — a cathartic drama put on for our benefit.
We need the payroll tax torn out or the cap on incomes for the tax raised or no deal.
All the boldface type and questiony exclamation points can’t change how math works.
I agree with the tiger, you found a glaring loophole which Geithner no doubt demanded so that his hands are not tied in the event he wants to bail out more filthy criminal bank assholes. When, for example, their foreclosure frauds and securitization time bombs blow up in their face.
oh lordy, trolls are busy today OFG. don’t take all the work on yourself.
You are gonna love this. Not only did Obama sell us out to big PhRMA in the health insurance scam, that “domestic production” credit in Puerto Rico is for pharmaceutical manufacturers. That’s how it’s usually coded.
As we get ready to give any small treasure the middle class may have had completely over to the wealthy, I must reflect on this amazing quote from Matt Taibbi in “Griftopia”:
“With the $13-plus trillion we are estimated to ultimately spend on the bailouts, we could not only have bought and paid off every single subprime mortgage in the country(that would have cost $1.4 trillion), we could have paid off every remaining mortgage of any kind in this country–and still have had enough money left over to buy a new house for every American who does not already have one.”
So….we just need to continue throwing money upward, you know? That’ll get things fixed–and good.
Remaining Obama defenders–now confined almost exclusively to the morning shift on MSNBC–are taking their usual approach, assuring us of what a brilliant deal the Prez has made–if we lesser lefties were only clever enough to see.
That is the cruelty of what the WH assholes have done here. The WH put the unemployed into the dungeon and said they will be released when the fucking plutocrats get their ransom. Says who? Barney Frank, that’s who. The chairman of financial services, who knows how to count votes.
I have become convinced that the best thing for the average citizen is actually for the tax cuts to expire in their entirety. This latest post from David Dayen, here at FDL backs me up on why.
http://news.firedoglake.com/2010/12/10/payroll-tax-cut-would-mean-higher-tax-rates-for-the-working-poor/
And from all accounts, the tax cuts while not wholly inconsequential for some, are also not life savers.
I speak as someone who is not in difficulty now, which I realize will skew my view, but given the amount of debt this travesty of a deal proposes, it may be the best answer.
I think it beats complaining about the current deal and offering no solution.
It will be a win for the Democrats the same way HCR was a win for the Democrats, that is, a win in their minds only.
They’ll just keep saying, “But c’mon, there are a lotta’ great things in the bill people will LOVE once they get off drugs and stop being sanctimonious, purest, effin’ retards”.
And they will lose at the polls, again.
Will people on Social Security get their diet COLA?
Hmmm? If there were just some way to stop Congress from meeting until after the holidays! Then the tax cuts would expire, the wealthy could cry and people could pressure their reps in January to take care of this asap!
Just SOME way to delay, recess, or make Congress leave the Capitol?
Hmmm?
Yes. Kill the deal. Fuck the plutocrats.
No, not according to the table of contents. I would love to be corrected if anybody is grinding through all 74 pp. of the bill. (Nothing compared to what we had to dig through for health ins. reform.)
you found that at section 601(e) pp. 34-35 of PDF of bill.
It’s not in the current bill. May be in the “improved” one. And even though I’d get that diet COLA, they can shove that diet COLA as far as I’m concerned if they’re not going to do something about the 99ers and yet still give tax breaks to the one’s responsible for there being so many 99ers.
OMG! I love that technique! “The entire universe is only six thousand years old?” “Then how come we can see this distant space object which is leventy billion years away from us?
I missed this at first. The link in DDay’s main post to the “scoring” of the bill is only to a Bloomberg item, not to a government source. Bloomberg reported what the Joint Committee on Taxation estimated.
We usually get detailed scoring from the Congressional Budget Office (CBO). CBO made the entire Congress jump thru hoops on health ins. reform all last year. But there won’t be any CBO scoring on this piece of shit because, guess what? It’s an emergency (see section 802, pp. 73-74). Because it’s an emergency, Pay-As-You-Go does not apply! CBO only scores bills covered by PayGo. Presto! Instant Payoffs to Plutocrats!
These egregious assholes are paying out MASSIVE TAXCUT BONUSES as if it’s an EMERGENCY to shovel money to the filthy rich!
Unfortunately the creationists have an answer: the speed of light has slowed down over time.
Seriously, you just can’t argue with someone who believes in magic.
Many of the so-called renewable energy projects are huge scams – especially those in and near Harry Reid’s Nevada. A bright light needs to shine on what Harry is up to – and who the mega-renewables crowd really is – and the environmental destruction renewables sprawl is causing on public lands.
Putting these hugely destructive wind farms in the middle of nowhere – supported by government loans for the Usual Suspects – is madness. Like the Ely Nevada BLM Spring Valley wind farm vying for a DOE loan right now – They are really just the Carlyle Group.