Jared Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts Compromise 17AUG10

This is a perfect example of what Arrianna Huffington wrote in her post (previous post on this blog Memo To America's Working Class; Obama's Just Not That Into You), and it is up to working America, middle class America, and unemployed America to make sure the bush era tax cuts for the wealthy expire as scheduled. After all, I don't see any evidence of these tax cuts creating any jobs here in the U.S., do you????
 
A key member of the White House economic team is throwing cold water on a leading compromise proposal in the debate over the extension of the Bush tax cuts for the wealthy.
In a sit-down with the Huffington Post on Monday, Jared Bernstein, Vice President Joseph Biden's chief economist, expressed skepticism with a plan to "phase out" the tax cuts for the wealthy as opposed to simply allowing those tax cuts to expire (as scheduled) later this year.
"There are many good reasons not to extend the high-end parts of the Bush tax cuts having to do with the fear that a temporary extension could be made permanent," Bernstein said. "What you are talking about -- a $30 to 40 billion range in terms of adding to the deficit by extending the high end -- could easily become $700 billion over a ten-year budget window."
"I think the phase out suffers from that vulnerability," he went on. "You are exposing yourself to the risk that it could be made permanent. The president, [Treasury Secretary] Tim Geithner have been very articulate on this point. If you wanted to, and we do, provide more help to the economy that is about the worst way you could do it. Those folks tend not to be liquidity constrained and therefore the kinds of multipliers associated with that type of spending are the lowest. So it simply is not good stimulus policy and it is not good budget policy."
The comments from Bernstein were offered, in part, as a response to a proposal suggested by Moody's economist Mark Zandi. A former adviser to Sen. John McCain who has increasingly become a philosophical ally of President Obama, Zandi has suggested that an abrupt increase in the tax rates on those making over $200,000 a year would have a freezing effect on job creation and economic recovery. Simply not raising the rates, however, would blow a massive hole in the federal budget. As a compromise, Zandi argues, the government should gradually reinstate the higher tax rates over the course of several years.
The White House has favored letting the Bush tax cuts on the wealthy expire as they are set to do under the law. But administration officials haven't been pressed about the middle-ground proposal. Bernstein's comments are the closest that White House aides have come to fully rejecting the idea and they portend an even more dramatic and heated political fight once the issue of the Bush tax cuts re-emerges following Congress' August recess.

WE ARE STILL AT WAR from MOJO & Video: The Vice President and Dr. Biden Welcome Troops Home from Iraq

U.S. Army soldiers from 1st Battalion, 327th Infantry Regiment, 101st Airborne Division kneel outside the town of Badmuk, Kunar province, Afghanistan, after a night assault on suspected Taliban positions as part of Operation Azmaray Fury, on Aug. 2, 2010. Photo via the US Army by Spc. Anthony Jackson.

66 AMERICANS KILLED IN AFGHANISTAN IN JULY, 15 KILLED SO FAR THIS MONTH, IT IS TIME TO END THIS WAR AND BRING ALL OUR TROOPS HOME FROM IRAQ AND AFGHANISTAN.

 The White House Blog

Video: The Vice President and Dr. Biden Welcome Troops Home from Iraq

Posted by Katelyn Sabochik on August 18, 2010 at 11:56 AM EDT

A few weeks ago, the Vice President and Dr. Jill Biden visited Fort Drum in upstate New York to welcome home the 2nd Brigade Combat Team, 10th Mountain Division, from Iraq. One of the most deployed brigades in the U.S. Army, the 2nd Brigade Combat Team has participated in three deployments to Afghanistan and four deployments to Iraq.
Watch the Vice President and Dr. Biden honor our troops service and welcome them home.




Shortly after taking office, I put forward a plan to end the war in Iraq responsibly. Today, I'm pleased to report that -- thanks to the extraordinary service of our troops and civilians in Iraq -- our combat mission will end this month, and we will complete a substantial drawdown of our troops.


Over the last 18 months, over 90,000 U.S. troops have left Iraq. By the end of this month, 50,000 troops will be serving in Iraq. As Iraqi Security Forces take responsibility for securing their country, our troops will move to an advise-and-assist role. And, consistent with our agreement with the Iraqi government, all of our troops will be out of Iraq by the end of next year. Meanwhile, we will continue to build a strong partnership with the Iraqi people with an increased civilian commitment and diplomatic effort.


A few weeks ago, men and women from one of the most deployed brigades in the U.S. Army, the 2nd Brigade Combat Team, 10th Mountain Division, returned home from Iraq. The Vice President and Dr. Jill Biden were at Fort Drum to welcome the veterans home and spoke about their personal experiences as a military family:


Our commitment to our troops doesn't end once they come home -- it's only the beginning. Part of ending a war responsibly is meeting our responsibility to the men and women who have fought it. Our troops and their families have made tremendous sacrifices to keep our nation safe and secure, and as a nation we have a moral obligation to serve our veterans as well as they have served us.


That's why we're building a 21st century Department of Veterans Affairs. We've made one of the largest percentage increase in the VA’s budget in 30 years, and we're dramatically increasing funding for veterans' health across the board. In particular, we're delivering unprecedented resources to treat signature wounds of today's wars—Traumatic Brain Injury and Post-Traumatic Stress Disorder.


Our sacred trust to take care of our veterans goes beyond simply healing the wounds incurred in battle. We must ensure that when our veterans leave the Armed Forces, they have the opportunities they need to further their education and support their families. Through the Post-9/11 GI Bill, some 300,000 veterans and families members have pursued a college degree. Others are taking advantage of job training and placement programs.


My Administration will continue to do our part to support the brave men and women in uniform that have sacrificed so much. But supporting our troops and their families is not just the job of the Federal Government; it's the responsibility of all Americans.


As we mark this milestone in the Iraq war and our troops continue to move out of Iraq, I hope you'll join me in thanking them, and all of our troops and military families, for their service.


Sincerely,

President Barack Obama