New Analysis Shows that Latest Tax Proposals from Obama and Boehner Come Up Short
New estimates from Citizens for Tax Justice show that the proposal by President Obama to extend the expiring tax cuts for income up to $400,000 would save only 24-84 percent as much revenue as his original proposals, depending on what details are included. Meanwhile, the so-called �Plan B� that House Speaker John Boehner is discussing to extend tax cuts for income up to $1 million would save only 15-53 percent as much revenue as Obama�s original proposals, depending on what details are included.
The details make an enormous difference because there are several components to President Obama�s original proposals, and it�s unclear which components are included in these latest offers. For example, Speaker Boehner�s �Plan B� is allegedly to allow the income tax cuts to expire for income exceeding $1 million. If this only includes allowing the rate reductions for ordinary income to expire for income exceeding $1 million, this would only save $220 billion over ten years, which is just 15 percent of the $1.4 trillion that President Obama�s original proposals would save over ten years.
Read the report.
No lawmaker who cares about fiscal responsibility or tax fairness should consider extending any more of the expiring tax cuts than the President�s original proposal would extend. The latest offers from the President and from Speaker Boehner would both extend tax cuts for income above $250,000 and therefore should be rejected � no matter what details we learn.
To extend any more of these tax cuts would suggest that the real winner of this debate is George W. Bush, the President who enacted these tax cuts and presided over one of the greatest economic calamities in our history. If the budget deficit really is a concern, then why should we extend any more of his tax cuts for the rich?
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