Tax Cut Compromise: Representative Michele Bachmann on the Republican Stance

Representative Michele Bachmann (R-MN), chairwoman of the House Tea Party Caucus and a tax lawyer, expressed her concerns about the recent tax cut compromise, which includes extending the Bush-era tax cuts and unemployment benefits. The deal, valued between $700 billion and $900 billion, has a hefty price tag that may not sit well with the fiscally conservative tea partiers. Bachmann pointed out that the extension of unemployment benefits for 13 months costs $54 billion, which does not appear to be offset, adding to the deficit. She also noted that the 2% reduction in the payroll tax for employees will decrease revenue for the Social Security trust fund, further adding to the deficit.

Key Takeaways:

Representative Michele Bachmann, a tax lawyer and chairwoman of the House Tea Party Caucus, expressed concerns about the tax cut compromise.
The compromise includes extending the Bush-era tax cuts and unemployment benefits, with a price tag of $700-$900 billion.
The extension of unemployment benefits for 13 months costs $54 billion, with no apparent offsets, adding to the deficit.
The 2% reduction in the payroll tax for employees will decrease revenue for the Social Security trust fund, adding to the deficit.
Bachmann emphasized the importance of preserving tax cuts for all Americans, preventing massive tax increases.
The compromise may have unintended consequences, with Bachmann defining the "real cost" as the outlay of unemployment benefits and the reduction in the Treasury's Social Security funds.
As a practical matter, Bachmann suggested that waiting until the lame-duck Congress expires and the Republicans take power in January may not be a viable option.

Statistics:

The tax cut compromise has a price tag of $700-$900 billion.
The extension of unemployment benefits for 13 months costs $54 billion.
The rate of the payroll tax reduction is 2%.
The government spent $54 billion more on Social Security than it took in revenue in 2010.
The Social Security trust fund will experience a decrease in revenue due to the payroll tax reduction.

Sources:

FOX NEWS CHANNEL "AMERICA LIVE" INTERVIEW WITH REPRESENTATIVE MICHELE BACHMANN
Federal News Service, Inc.
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