suggestion to the PResident: Have a televised summit with GOP on tax cuts (&dealing with deficit)

[JohnWxy]

PResident Obama. I suggest you have a televised summit meeting with the GOP on the retention of Bush tax cuts. Now, I know it's not considered acceptable to negotiate with (economic) terrorists, but sometimes it's necessary... and it can serve a purpose when you can show the country what you are up against!

Have a summit with the Corporate Lobbyists on whether to retain or let the Bush tax cuts die. When the Corporate Lobbyist Party insists the tax cuts for those over $200 K be extended, ask them to explain how they reconcile giving the higher income groups a tax cut with their concerns for deficit reduction. If we are going to use tax cuts to help our economic situation, given it's contribution to the Public Debt, wouldn't it make sense to only use tax cuts that get you the biggest 'bang for the buck'?

Moody's Analytics concluded that Unemployment insurance payments result in $1.61 of economic activity for every $1 of taxes foregone. NOw this could be considered the return of economic activity for tax cuts to those with incomes of say $15,000 (http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/how-much-jobless-pay-would-you-get.aspx">the average unemployment check is $293 a week). While Moodys also concluded that the Bush tax cuts, about 50% of which went to the top few % points of the income scale, yielded only 32 cents worth of economic activity for every dollar of taxes foregone. These tax cuts while being heavily weighted to the very high income groups, did include cuts to those of lower and average incomes. So the $.32 of economic activity returned for every $1.00 of tax cuts was an average across all taxable income levels.

Given that the $.32 economic 'kick' for each $1.00 of tax reductions produced was an average - including all income groups, imagine how little economic boost was contributed from the highest income groups (which if you'll recall recieved 50% of the tax cut!) when you consider that those with below average and average income should have been producing a return of between $1.61 (rate of return for those with $15,000 income) and $.32 for every dollar of tax reduction. I think it can be inferred (perhaps CBO or Moodys could be tasked to make this a mathematically based inference based upon the available data).. that tax cuts just to the wealthy would yield a paucity of economic activity .. in terms of consumer purchases.

So, one could ask the Republicans to rationalize a tax cut for those over $200K in income considering the contribution to the National Debt such a tax cut would produce, given the meagre boost to the economy such a cut would yield.

Worth some thought, no?