Tuesday, July 24, 2012

GOP's Tax Cuts For Rich Add $80 Billion More To Deficit

The Republicans started posing as "deficit hawks" following Obama's election in 2008. As if that weren't enough to not take them seriously on this issue, one merely needs to examine the findings of the non-partisan Joint Committee on Taxation. The committee reports that the Republicans would add $80 billion more than the Democrats to the deficit in 2013 due to their insistence on extending the Bush tax cuts for the wealthy. That figure would only grow over 10 years:

A Republican proposal to preserve tax cuts for the nation’s wealthiest households next year would cost about $80 billion more than a Democratic proposal to extend the cuts solely for middle-class taxpayers, according to official estimates released Thursday.

The GOP measure, introduced by Senate Republicans, would devote an additional $50 billion to retaining the George W. Bush-era tax cuts for taxpayers in the top two tax brackets. Reducing the estate and gift tax, which disproportionately benefits the wealthy, would eat up another $31 billion, according to cost estimates by the nonpartisan Joint Committee on Taxation.

All told, the Republican measure would add $300 billion to next year’s budget deficit, the JCT said.

...“If we decouple the tax cuts for those earning above $250,000 they will be gone for good. Over ten years, that will reduce the deficit by $800 billion compared to what Republicans want to do,” said Sen. Charles Schumer (D-N.Y.).

Image: Steve Sack, Star Tribune

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