A lame duck Congress faces vicious debate in the next few weeks about extending unemployment benefits and the Bush tax cuts. However, the non-partisan Congressional Budget Office estimates that extending unemployment benefits is five times more effective than extending tax cuts for the wealthy in economic production.

Both are scheduled to expire by the end of year unless Congress acts. Despite the statistics from the CBO and other organizations, Republicans and Democrats are preparing for a legislative battle over both issues.

Those who are now unemployed tend to spend all of their paycheck, thus putting all that money back into the economy. Those making over $250,000 tend to save income beyond that level that is currently untaxed, doing little for the economy.

Corporations that continue to sit on record profits from the past year as the economy continues to sputter proves that tax cuts will do little good as the wealthy are not spending what they have. Higher taxation for both groups will do negligible economic damage while lowering the budget deficit.

According to statistics compiled by Ralph Martire of the Center for Tax and Budget Accountability, the costs of the two policies are nowhere near close.

The cost of extending unemployment benefits for about six months, which only average $253 per week, is estimated around $40 billion. In contrast, the Bush tax cuts and interest payments from the debt they cause cost $450 billion this past year alone. $200 billion of that goes to the wealthiest 20 percent of Americans. Over the next decade, extending the tax cuts for the wealthy would add $700 billion to the federal deficit.

So, in exchange for a fraction of the cost, the government can get five times the economic investment?

The deficit must be addressed, but the government must involve itself in sensible spending cuts and tax increases. Unemployment benefits are one policy that is helping prevent an economic disaster, while tax cuts for wealthy individuals are only adding to the budget deficit.

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