Monday, December 06, 2010

Winners and Losers: Obama to Extend Bush Tax Cuts

President Obama announced that he will extend the Bush tax cuts in exchange for an extension of unemployment benefits.

Who didn't see this coming?

In addition there will be a 2% cut in the payroll tax to offset the end of the making work pay tax credit.

So, the winners here are the unemployed, as they can take 2011 off and wait until 2012 to look for work.

American workers win as their tax rates are extended.

I think investors win. This should be seen as more stimulus for the economy.

Republicans win, as they will be seen as having forced Obama to move to the right. This also leaves the cut taxes debate alive for the 2012 election.

President Obama wins, as he moves to the center and hopes to capture the independent voters the democrats lost in 2010.

Future taxpayers lose as this just piles on more to the deficit. Interest payments on the debt continue to climb.

Sarah Palin and The Tea Party loses, as their desire to cut the deficit gets tossed out the window.

The value of the dollars should continue to decline. So gold and commodity investors win. But drivers lose, as this could mean oil prices also continue to rise.

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