Thursday, August 12, 2010
The nonpartisan Joint Committee on Taxation examined the impact on high-income taxpayers of President Obama's plan to let the Bush tax cuts for the wealthy expire. First, there are the projections for extending the cuts in general and on extending them for the wealthy:
Extending them for the next 10 years would add about $3.8 trillion to a growing national debt that is already the largest since World War II. About $700 billion of that reflects the projected costs of tax cuts for those in the top 2 percent of income-earners.
Mind you, those who strongly support extending the Bush tax cuts also claim to be deficit hawks. The president spoke about the GOP's real priorities:
Speaking of Republicans at a fund-raiser in a wealthy community near Dallas on Monday, Mr. Obama told Democratic donors, “What you see is a governing philosophy on their part that basically comes down to ‘We’re going to extend tax cuts for the wealthiest among us’ — folks who don’t need those tax cuts and weren’t even asking for them, which would cost $700 billion.”
The Joint Committee's study exposed the Republicans' sham argument regarding tax cuts for the wealthy:
For their part, Republicans do not emphasize the impact of extending the tax cuts for wealthy individuals. Rather, they say Mr. Obama is about to spring a big tax increase on many small-business owners who file their taxes as individuals. Analyses from the Joint Committee on Taxation and the Tax Policy Center, a nonpartisan research organization, show that less than 3 percent of filers with small-business income pay at the top two income tax rates, and many of those are doctors and lawyers in partnerships.