CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit

Economists have already analyzed Barack Obama’s job plan and concluded that it will help reduce the risk of another recession and increase jobs. The Congressional Budget Office has now analyzed the report and found that it will help reduce the budget deficit:

The Congressional Budget Office on Friday confirmed that President Obama’s jobs bill would be fully paid for over ten years and also gave its seal of approval to Senate Democrats’ version that includes a surtax on millionaires.

The CBO said that the original Obama stimulus bill would involve $447 billion in tax cuts and new spending—the same estimate given by the administration. It said the bill would raise $450 billion over ten years. The result is a $3 billion decrease in deficits over ten years.

The Senate Democrats’ bill, which replaces Obama’s taxes on the upper middle class with a 5.6 percent surtax on those with annual incomes above $1 million, raises $453 billion over ten years and reduces deficits by $6 billion. The tax kicks in in 2013.

Senate Majority Leader Harry Reid’s office highlighted that the CBO affirmed 60 percent of the stimulus comes in the form of tax cuts rather than spending and that most of the tax relief is for workers.

CBO also said that the bill “could have a noticeable impact on economic growth and employment in the next few years.” CBO under its own rules is prevented from factoring in increased unemployment, and the possible increased tax revenue that could result into its cost estimate.

Of course Republicans will continue to oppose the plan for two reasons. First of all, they would prefer that the economy continues to do poorly in the hope that this will cause voters to take out their frustrations on the Democrats as occurred in 2006, which is also why they have used their power in Congress to extend the downturn and reduce job creation. Secondly, Obama’s plan, while good for the country, results in higher taxes for the wealthy. Promoting lower taxes on the wealthy is the primary goal of Republicans, even if we have tax rates below those present when Ronald Reagan was president.

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16 Comments

  1. 1
    Robert Ropars says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  2. 2
    Marty Dunleavy says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  3. 3
    McBlondeLand says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  4. 4
    Marissa Clark says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  5. 5
    Darrell says:

    CBO economists conclude Obama's plan would reduce the risk of another recession & increase #jobs.
    http://x.co/aAAO RT @dailyhillster #p2

  6. 6
    ISupportObama says:

    CBO has scored Obama's American's Job Act, CBO says it will create jobs & lower the deficit. http://t.co/zuxSknUE #Obama2012

  7. 7
    Tori says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  8. 8
    John Gemmill says:

    CBO economists conclude Obama's plan would reduce the risk of another recession & increase #jobs.
    http://x.co/aAAO RT @dailyhillster #p2

  9. 9
    laura bristol says:

    CBO economists conclude Obama's plan would reduce the risk of another recession & increase #jobs.
    http://x.co/aAAO RT @dailyhillster #p2

  10. 10
    Christopher Marlowe says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  11. 11
    Christopher Marlowe says:

    CBO economists conclude Obama's plan would reduce the risk of another recession & increase #jobs.
    http://x.co/aAAO RT @dailyhillster #p2

  12. 12
    Rosanna Gelaz says:

    CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit http://t.co/qJ07DbPD #p2 #topprog #liberal #dem

  13. 13
    Aric Caplan says:

    CBO economists conclude Obama's plan would reduce the risk of another #recession & increase #jobs. http://x.co/aAAO RT @dailyhillster #p2

  14. 14
    John Sonntag says:

    RT @ronchusid: CBO Finds Obama Plan Will Stimulate Economy and Reduce The Deficit #p2 #p21 #topprog http://t.co/ir35Ml1p

  15. 15
    Clio the Leo says:

    Contrary to #Boehner's claim, #Obama's jobs bill will decrease the deficit http://t.co/4h4wTzBF #p2

  16. 16
    RobinCook says:

    Contrary to #Boehner's claim, #Obama's jobs bill will decrease the deficit http://t.co/4h4wTzBF #p2

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