Tax Vote Passes Congress 277 To 148, Bill Goes To Obama For Final Signature

And like that, just before midnight, Congress, despite much protesting and posturing, passed the tax vote by a massive margin. 277 voted for with just 148 against. Now the tax extension faces the final formality of passing Obama's signature. The upside: no new taxes; the downside anywhere between $800 billion and $5 trillion in incremental debt to fund this latest stimulus which will only work if all the Wall Street sellside analysts who pushed for it so hard, are right. Given Wall Street's prediction track record we have "100% confidence" they will be spot on as usual.

From Reuters:

Over objections from many of Obama's fellow Democrats, the House of Representatives, on a 277-148 vote, passed the $858 billion package of renewed tax cuts and more unemployment benefits in an economy saddled with a nearly 10 percent jobless rate.

The measure, approved overwhelmingly by the Senate on Wednesday, was expected to provide at least a short-term boost to the U.S. economy but add to a $14 trillion national debt that some fear is nearing dangerous levels.

Many Democrats complained that Washington was handing some of the nation's wealthiest people tax breaks they said would not be reinvested into the fragile economy. But backers of the measure prevailed.

"If it works well, our (economic) growth rate should go up at least a full point next year," reducing the jobless rate, said Democratic Representative Jane Harman. "That is worth taking this bet."

We will post the final roll call shortly to discover just who among the most vocal opponents ended up endorsing the bill.

Comments

[Let them all fail]

I can't believe these stupid bastards (well, actually I can since their incompetence is only matched only by automated phone payment systems).

You can only cut spending so much, we have $14 trillion in debt, you can't lower everyone's taxes you goddamn idiots.

Fuck you Congress.

[DaveyJones]

I'm sure further underfunding social security and increasing debt will fix our ongoing obligations.

[gwar5]

I have a problem with the rhetoric regarding the $800B "lost" revenue due to NOT hiking rates.... (and the number keeps getting bigger and bigger)

1. Tax rates and tax revenues are two different things -- we need revenues.

2. Washington has never been right on their numbers

3. Obama said he'd take less revenues by raising capital gains to punish investors (brilliant)

4. Bernank has taxed Americans by 15% thru debasement already, more to come, raising rates is just insult to injury

Carter had 70% top marginal rates and the top earners paid only 19% of all revenues. With lower rates they now pay 40% of all revenues. The BRIC countries would be happy to have our top earners and to keep theirs from coming here.  Cutting our spending and letting the banks fail is the only possible way to rebalance and has not even been seriously discussed or put on the table yet. 

[Pool Shark]

What's another $800,000,000,000.00?

Just add it to our tab.

[Charles Ponzi was a piker]

[Encroaching Darkness]

It hardly matters: the Encroaching Darkness is gathering speed, and approaching from all directions.

Housing, still cratered; mortgage rates, rising; QE(n), still coming; deficits, still increasing; revenues, still low and probably still dropping.

If this keeps up, I'll have to change to Following Dark (any Pratchett fans out there on ZH?)

Good luck holding it together as the idiots charge the cliff.

[suckerfishzilla]

what's the diff?  I ain't paying the bankers nothing on the debt anyway.  We have 51% of the piggies at the pork barrel.  Game over.