welcome back to the newsroom. this hour our eyes on the u.s. senate. the senate now nearing a final vote on this controversial tax cut deal. reminder this is the deal that the president and the republicans helped strike up to extend tax cuts under president bush for everyone. so add-ones include a cut in the social security tax and extension of aid to the unemployed. we talked a lot about the screaming from the left side of things, some democrats, how is dems in particular saying the president should have fought harder to raise taxes on the richest 2% but there s growing unease emerging from the right side of things. jessica yellin. who s angry on the right and why? reporter: already some of the critics who have come out on the far right against this have compromise include rush limbaugh, the house s michele
republican representatives having started in january, hard to imagine any political dynamic that has the republicans in the house moving these numbers up, or making raising these marginal tax rates. so i think we re talking about something that will last at least probably a decade. if we do that, the basically, the amount we add to the deficit now with these other add-ones is over the next decade is more than $4 trillion. senator, that is more than $4 trillion. and remember, put this in context. last week, all of the hubbub about the simpson bowls thing that took on social security, took on medicare, ended up, you know, closing a lot of tax exclusions. in total, that only reduced the deficit $4 trillion. so, you know, the idea that these are going to be locked in stone with all of the other things that are kind of hard to get at, will mean that at one point soon, whether it s the next couple years or five years from now, the bond market and others are going to say, they re
president clinton who seemed delighted to be back in place. what do you think of that? you know, i found one of the things as a current elected official, it s probably not good to comment on current or former president s in terms of their speaking time. so i ll do a quick pass on that one. fair. kathleen, i don t think anybody was surprised that the president president clinton, you know, liked the opportunity to be back in the limelight. he seem ride at home. i think there is another reality here, which is that the terms of this deal are not, in my view again, i hope i m wrong, but this is not a two-year transaction with the republican representatives having started in january, hard to imagine any political dynamic that has the republicans in the house moving these numbers up, or making raising these marginal tax rates. so i think we re talking about something that will last at least probably a decade. if we do that, the basically, the amount we add to the deficit n
politicians running late on what to do about the bush tax cuts once and for all. get them extended or see them all gone, and then retroactively ratcheting up to the beginning of the year. and both parties desperately want to avoid that. here is the latest on what they ve got, to make sure they avoid that. we ve got about an 856 billion dollar package, it has grown measurebly since the debate over this intensifies and right now, it looks like about an 801 billion dollar package on just tax cuts, but here is what s proven to be the bugaboo for a lot of republicans, indeed, a lot of tea partiers, the fact that they ve got 55 billion in taxes and add-ones there, and we ve got interesting one, we ve got some forum producing in puerto rico. and biodiesel, motor sports complex benefitting to the
creates a new service, a new product, which creates jobs. brenda: okay, but. end of story. brenda: but in a sense, if they re getting tax cuts, not talking about the add ones and the unemployment insurance really, but if the tax cuts are temporary, do they see fewer jobs than if they were permanent. it wasn t clear because there s less incentive to the entrepreneurs to make those investments. if a tax by the way, it s not a tax cut, it is the existing tax rate. if you raise those rates, there s less incentive for the job creators, not the government, but the job creators of america, to invest and that is where the tax issue comes. eric, i m going to get right to you and give gemu a chance to respond to this. i think we have to be re realist realistic, every economist who says this will be good for t