Krauthammer believes the Obama/GOP tax deal is going to be a trillion dollar fiscal stimulus:
Baier: Ok there will be people who say how does that all create jobs. Keeping the tax rates the same, does the payroll tax to workers really pay off in that big of a fashion. And is the 900B dollars that you’re citing, is it worth it in the big picture?
Krauthammer: Well it’s money in that will be – and this is a Republican argument, a conservative argument. You want to leave the money in the hands of the people. So by returning it to workers in the payroll tax, in reducing it with all the Obama tax cuts, and in having the money infused through unemployment benefits for an extra year, plus the absence of the hikes you would have had with the expiration of the Bush cuts, you’ve got almost a trillion dollars in the hands of Americans who will spend it. And Republicans will argue that doing it through taxes is the way to stimulate an economy and recovery. It’s a Republican argument and I think it’s gonna work!
The above is the transcript from about halfway. Listen to the full clip for full context.
He’s the first I’ve heard say this. Levin apparently heard him say this last night and replied on-air that with the cost of the unemployment benefits for 13 months, it will offset anything we gain from the tax cuts. He believes this is nothing more than creating a bigger government.