About that $4 Trillion Deficit

A quick word about this:

The CBO determined Tuesday that the package, hammered out late Monday evening by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.), would — over the next decade — come with a $3.9 trillion price tag.

The price tag is calculated based on the deficit if the Bush tax cuts had been able to completely expire. So any Republicans screaming about the fiscal cliff deal's deficit-creation doesn't know what they're talking about and, in fact, the Republicans supported a larger deficit by making all of the Bush tax cuts permanent. The president and the Democrats, meanwhile, wanted more of the tax cuts to expire than the Senate Republicans. Establishing the cut-off at $250,000 would've created less of a deficit than the McConnell-backed $400,000 cut-off.

  • Cody

    Liberal Dems get on board with the tired old argument of tax cuts being beneficial to the economy and hold hands with Republicans to endorse 99.3% of the Bush Tax Cuts?

    Anyone remember all the talk back in Dec 2010 about… “We’ll have all the leverage next time! All Dems have to do is hold firm and do nothing. All the BTC will expire. Current law, Cody! Current law!”

    I can’t wait for the next fiscal fight in 2 months when I hear Dems telling me how “of course S.S. cuts are related to deficit reduction, Cody. We didn’t have the votes. His veto pen was broken. He’s an awesome leader. Just show up in 2014 midterms!”

  • D_C_Wilson

    Republicans are frustrated right now. They had a nice, eight-year stretch where they didn’t have to pretend they gave a rat’s ass about the deficit. Then the Kenyan Kommunist ™ invaded their White House and they’ve had to whip themselves into a constant state of fake outrage.

    And they really thought that by this time, the scary anti-colonial black man would be on his way out and they could ram through the Ryan plan (which would increase the deficit) and then go back to not caring about the deficit again. Now they’re just coming to terms with the fact that they’re going to have to continue pretending they care about the deficit for at least another four years.

  • GrafZeppelin127

    Anytime GOP fans are freaked out over something like this, it’s virtually guaranteed that either (a.) it’s bullshit, or (b.) there’s more to it than they’re saying/being told.

  • drsquid

    Establishing the cutoff at $250k would’ve created a $3.7 trillion as opposed to $3.9 trillion tag. Also, indexed to inflation, $250k in 1993 is $390k today. PBO gave up next to nothing.

    • BuffaloBuckeye

      Good poinr. Damn near a clean win. Well done by PBO and VPJB.