President Obama Defends Compromise on Taxes
It’s a deal: Millions of out-of-work Americans will continue to get unemployment benefits. That's something the Democrats want. In exchange, all Americans, including the wealthiest, will get their Bush-era tax cuts extended for another two years. That's something Republicans want.
President Barack Obama defended his compromise. He said he knows opinion polls show most Americans wanted to end the tax breaks for the top income brackets. But he said he just could not get agreement from Republican leaders in the House and Senate. "And if I can't persuade them, then I've got to look at what is the best thing to do given that reality, for the American people and for jobs."
Markets
Wall Street liked the deal, and sent stocks soaring at the start of trading today.
In the end, the Dow Jones gained 15 points, to close at 11,377. The S &P 500 gained over two points, to close at 1,225. The NASDAQ closed at 2,601, up six points.
Mixed Jobless Numbers from Major Cities
Those tax cut and unemployment benefit extensions are intended to spur job growth and help those who are out of work. And the Labor Department reports today that the jobs picture for the nation's largest cities was largely mixed. Of the 372 cities in the report, more than half saw their unemployment numbers fall in October. However, it rose in nearly a third. Out of the cities with populations of greater than one million, Riverside, California, and Las Vegas, Nevada, reported the highest unemployment rates, both over 14 percent. Washington, D.C. had the lowest rate at about six percent. New York City's unemployment rate fell in October to 9.2.
Two Reports on New York's Fiscal Health
The Fiscal Policy Institute finds more than $8 billion in business tax breaks for economic development and job creation. The Institute questions the financial benefit of these “tax expenditures” for programs like Empire Zones and Brownfields Redevelopment. The state Business Council responded to the report, pointing out that businesses in New York already pay $56 billion in taxes, second only to California.
The Empire Center for New York State Policy reports taxpayer contributions to state public pension funds will “explode." The center calculates that taxpayer funds for the state teachers’ retirement fund will increase from $900 million this year to $4.5 billion in five years. Contributions to the state and local retirement system will double to nearly $4 billion. New York State Comptroller Thomas DiNapoli has previously said the funds are healthy.
What's in the Nation's New Tax Deal?
President Obama announced a deal with Republicans over providing tax cuts to every American. WNYC's Lisa Chow has been talking to tax policy experts. She breaks down what's in the deal, what your tax savings will be, and how the new deal could stimulate the economy. Tell us what you think about the plan. Take a poll and add your voice at It's a Free Country, WNYC's politics page.