On the other hand giving business the information they need to decide what direction they are going to next year is what this bill will do too. If I’m a business ownerI want to know how much my taxes are going to increase or decrease this year. Despite what the democrats think businesses include the cost of paying taxes into the cost of doing everyday business.(Psst..that’s passed on to the customer in what they pay for a product)

Finally this is not a tax cut but maintaining the same tax brackets the way they have been for 10 years. If it expires then it will be a tax increase. By the way since millionaires all sit back and save there money must mean the bum down the street must be hiring to write graffeeti on rail road box cars. Where is your logic????

“I wonder what the rich will do with their extra 200,000 for the year…..I bet they will immediately create jobs, just like they have in the past 10 years…”

What seemed obvious to me is just dawning on die-hard deflationists like Mike Shedlock.

Yes, yes, in theory if the government did absolutely nothing and let the credit crunch happen we in a big deflationary spiral. But one of the greatest economic lies ever told is that once deflation catches on it cannot be stopped. The opposite is true: it is inflation that has often jumped the rails without warning.

Even with Q.E. there were arguments of ‘yes but the money is not reaching the *real* economy because there is no lending.’

Well here we are: New, printed money is buying newly issued treasuries to finance tax cuts that go straight into the real economy. The chance of the Fed selling these treasuries back into the market soon (or ever) is practically nil so it really is new money.

It takes mere days for the Fed to decide on Q.E. and mere weeks for pols to agree to deficit-financed tax cuts. And this in a climate of tough new fiscal resolve?

There is a reason why sovereign inflationary crises outnumber deflationary crises by about 100 to 1 in the history of nations.

Your elitist roots are showing again, Felix. I don’t fall into the category of people with a taxable income of over $250K, and I suspect that most of your readers don’t, either. These are the only folks who will see more cash for the next two years.

“This is tax cutting, Oprah-style: you get a tax cut! And you get a tax cut! And you! And you! You all get a tax cut!”

WAY too true!!

Problem is, of course, how the hell to pay for all this!!!!!
Unlike Oprah’s show, wherein the sponsors, or her, purchase all the cars they give to the studio audience …

In a microcosm, that is PRECISELY the problem with the United States as of late 2010: we all want it, we all want it for free, and we all want somebody else to pay the tab!

What is worse, profoundly sadly, is it also seems we don’t, generally, want to share one single bit of it with anybody else — to pay for any “commons”!

I, for one, am most desirous, for example, of de-funding my personal portion of the wars in Iraq, Afghanistan, and Pakistan! The U.S. Federal government could use my taxes to fund education, green energy, jobs, etc. instead!

I am, however, in favor of continuing to fund my local fire and police departments.

Sadly, WObama does not seem to care much about my preferences … (as long as Wall Street is happy, he is happy! so it seems)

The Bush is one of most insane greed and fraudulent mislead in history.

Remember, if your family makes $50,000, you are making less in real dollars than you made in the peak of American middle class well being, the Jimmy Carter years.

Very simply, $50,000 does not support a family of four in the United States.

Of course, the villain in this is health care costs and deunionization, but you probably opposed health care reform and hate unions……

What a sham that whole process turned out to be… we the supreem comission have determined that taxes need to be raised and spending needs to be cut.

Ok well times are pretty tough now because under-worked under-educated ageing westerners are getting pissy about competing with younger better educated harder working Asians and South Americans for the worlds natural resources… so we’re going to cut the payroll tax in ADDITION to renewing all the expiring tax cuts.

Wow… how stupid do you have to be to buy 10 year treasuries under 3% now.

Invest in yourselves and your families my friends… we have a date with the Greeks and the Irish.

Typical bubble mentality. All is rosy and can continue indefinitely, until suddenly one day it falls apart.