AYFKM? $85 Billion New Stimulus (Oops) Jobs Bill

AYFKM? $85 Billion New Stimulus (Oops) Jobs Bill

Wait until you read what the top two senators of the Finance Committee, Baucus and Grassley are putting forward as a jobs bill.  The left was bitchin’ that the $787 Billion Stimulus wasn’t big enough to get the job done and so far most of that Porkulus bill hasn’t even been spent.  Now they want to throw a drop of water on a ‘California wildfire’.  I have not yet read the bill, but I already know by reading the following article, I am going to be saying “Lord Deliver us from these fools”.

Baucus, Grassley Propose New Jobs Bill

The top Democrat and Republican on the Senate tax-writing committee today unveiled the main elements of a new jobs and economic recovery measure, hoping to put some rare bipartisan momentum behind major legislation.

Senators Max Baucus, Democrat of Montana and chairman of the Finance Committee, and Senator Charles E. Grassley of Iowa, the panel’s senior Republican, released a draft $85 billion plan that would give employers a payroll tax exemption for hiring those who have been unemployed for at least 60 days. The bill would also provide a $1,000 income tax credit for new workers retained for 52 weeks. (A draft of the bill is available here.)

Here in Hawaii, the unemployment insurance tax on employers is about to go from $90 to $1070 per employee.  Math states that $1070 is greater than $1000.  How about all the rest of the costs that small business incurs?  I am SURE small business is going to be lining up for this $1K.

The measure, which is scheduled to be reviewed by Senate Democrats this afternoon, also seeks to spur capital investment by extending tax benefits, by providing a federal subsidy for bonds issued for public works projects, and by taking steps to improve highway and transit construction. Jobless benefits and health care coverage for the unemployed would also be extended in the measure.

The costs of the bill would be offset by closing tax loopholes and shifting some money to be made available for future improvements in the Medicare program.

Calling the provisions time-sensitive, the two lawmakers said the bill was drafted in an effort to respond to current economic conditions, “We believe they reflect a balanced set of member views and priorities,” the two senators said in a joint statement.

Mindful of the difficulties of bipartisan cooperation in the polarized Senate, the lawmakers warned their colleagues not to alter the shape of the plan too significantly if they hoped to rally both parties behind it.

I will update this post after I have read the bill and add relevant data.

Baucus Bill: Taxed Coming Or Going Or Both? (UPDATED)

The Titanic Of All Debt Clocks

Michael Cannon of the Cato Institute has stepped up and is explaining the taxation that is coming down the line in the form of the Baucus Bill:

Still curious about the truth?

Despite New Deficit-Cutting Claim, Baucus Bill Is Just Tax-and-Spend

Let’s start with the price tag. According to the report just released by the Congressional Budget Office, the bill will cost roughly $829 billion over the next 10 years. And, significantly, it is even projected to reduce the budget deficit over 10 years by $81 billion. Of course, both those numbers are misleading.

The $829 billion cost is for the next 10 years, 2010-2019, but the most expensive provisions of the bill don’t take effect until July of 2013. The cost over the bill’s first 10 years of actual operation is closer to $1.3 trillion.

In addition, the bill assumes that Congress will implement a 21% reduction in Medicare payments that is already scheduled under current law. The only problem is that Congress has been supposed to make those reductions since 2003 — and never has. There is no reason to believe it will do so this time either.

Most importantly, the bill does not achieve its deficit reduction by controlling spending or reducing health care costs. In fact, by the end of the 10-year budget window, the cost of the program is expected to be growing at 8% per year. But revenue from the bill’s new taxes would be growing between 10% and 15% per year.

In particular, the bill imposes a 40% excise tax on health insurance plans that offer benefits in excess of $8,000 for an individual plan and $21,000 for a family plan. Insurers would almost certainly pass this tax on to consumers via higher premiums. (emphasis mine)

As inflation pushed insurance premiums higher in coming years, more and more middle-class families would find themselves caught up in the tax — providing the government with more revenue.

The overall tax increases in the bill are more than double the amount of deficit reduction. This isn’t a health care efficiency bill or a cost-containment bill. It is a tax-and-spend bill, pure and simple. (emphasis mine)

With all this, the bill still leaves 25 million people uninsured.

Make sure to go over to the Cato Institute and read the whole article.

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UPDATE:

Sen. Charles Grassley’s comments with Neil Cavuto about this bill going left.

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