Apparantly the President of United States wants to strike a deal with the newly strengthened Republicans on a deal, which essentially kicks the bucket down another two years. No backbone. Just politics. So the assumption is rich people should pay at 2001 levels, thay mindset shift will mysteriously make them create more jobs and trickle it down. Maybe they will, but by providing those tax breaks for the estate tax guys almost to the tune of billions is a bit too much to swallow by any sane standards.
So will my tax go up, maybe not payroll - but we will be paying more out of pocket in every which way. One can easily balance the budget - more taxes, less spending. It is just not going to happen. Eventually that Social Security and Medicare is going away, who will make the call - that remains to be seen.
So in the end...the logic is well, the longer term unemployed got another year. Why? WHy would anyone go look for a job if welfare state is alive and well. It will never solve the unemployment problem. MAybe the Obama Govt does not want them to be in the labor pool at all - one way to reduce the denominator.
It is silliness everywhere. The President may have crossed the point of no return. I hope for his sake, its incorrect because the options, other than Romeny are much much worse.