Ending Bush tax cuts for rich would save about $80 billion in 2013, analysts say

[웃 910]

Be a fiscal conservative like me, VOTE DEMOCRAT!

Fiscal conservatism is my main issue, I want a strong economy, job growth, and a balanced budget. I am a true fiscal conservative and that is why I support the Democrat Party!

Ending Bush tax cuts for rich would save about $80 billion in 2013, analysts say

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.

A competing Democratic proposal to extend the Bush tax cuts only on income under $250,000 would increase the deficit by about $223 billion next year. Democrats would devote an additional $27 billion to extending a variety of other middle-class tax cuts, including a credit for college tuition and an expanded credit for the working poor, bringing the total cost of the measure to about $250 billion.

The Bush tax cuts, enacted in 2001 and 2003, are set to expire Dec. 31. Democrats have threatened to let them all go unless Republicans abandon their push to preserve the cuts for taxpayers in the top brackets. With the release of the new cost estimates, Sen. Orrin Hatch (R-Utah) questioned the wisdom of that position.

“The American people deserve better than to have the President and his allies threaten to melt down our economy for what amounts to [a few] days of federal spending,” said Hatch, the senior Republican on the Senate Finance Committee. “With 41 consecutive months of unemployment over 8 percent, it just makes sense to extend this tax policy for a year so we can enact meaningful, pro-growth tax reform.”

Democrats countered that the one-year savings from ending the cuts for the rich may not be much, but that those savings would grow over time, bringing more than $800 billion into the U.S. Treasury by the end of the decade.

“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.).

The Senate plans to consider the tax measures next week; neither is expected to pass. The debate is designed instead to let each party air its position on taxes heading into the November elections.

Neither party is calling for a permanent extension of the Bush tax cuts. Instead, both sides are seeking a one-year extension that would give lawmakers more time to enact a complete overhaul of the Byzantine federal tax code in 2013.

http://www.washingtonpost.com/business/economy/ending-bush-tax-cuts-for-rich-would-save-just-28-billion-in-2013-analysts-say/2012/07/19/gJQAW0m0vW_story.html

[dalegg 143]

“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.).

It is extremely depressing that the biggest debate about deficit reduction that is going on is how to cut an amount of the debt over ten years that is less than the deficit of 1 year.

I will bet anything that congress does not allow the so-called "automatic reductions" to kick in at the end of the year either. Its almost unthinkable that at the end of the year we could be looking at tax-hikes, as well as large spending cuts. If I know my congress, the compromise will end up being that neither happens. Good thing nobody is ever going to have to pay the price of having never ending debt.

Edited July 23, 2012 by dalegg

[mawilson 2,133]

Ending Bush tax cuts for rich would save about $80 billion in 2013, analysts say

Ending Bush tax cuts for everyone would save $350-400 billion in 2013.

[dalegg 143]

Ending Bush tax cuts for everyone would save $350-400 billion in 2013.

if Obama is re-elected and still has to deal with a Republican congress, do you think he will blink this time or no? I'm guessing the tax rates we have today are going to be with us for another 2 years at least, no matter what.

[mawilson 2,133]

if Obama is re-elected and still has to deal with a Republican congress, do you think he will blink this time or no? I'm guessing the tax rates we have today are going to be with us for another 2 years at least, no matter what.

I hope the Republicans block his attempts to extend the tax cuts for the rich only and fail to reach an agreement by Dec 31, which means the tax cuts will automatically expire for everyone.

[Obama 2012 1,714]

You don't "save" money by ending tax cuts..... You can only "save" by not spending..... Taxes are not a constant whether you lower them or raise them.

[dalegg 143]

Its a useless argument anyway. If Obama somehow gets his way and is able to roll back the tax cuts to only the wealthy, that will mean that he has a different congress, because this current congress is definitely not going to allow that.

And if he has a different congress, there is definitely not going to be any "savings". Obama has already come up with places to spend that extra $80 billion and he isn't hiding that fact. Remember the jobs bill? And when that didn't work, there would just be some other stimulus type bill. This is not an accusation, it is actually their policy.

[Mr. Big Dog 10,747]

Ending Bush tax cuts for everyone would save $350-400 billion in 2013.

Closing all tax loopholes would more than balance the budget in 2013.

[^_^ 5,021]

Closing all tax loopholes would more than balance the budget in 2013.

A variant of Alinsky's rule # 10. Tell a lie long enough and it becomes the truth.

You're a good soldier for the socialist way, Big Dog!

[I AM NOT THAT GUY 5,715]

How much would the deficit be reduced if we sent all the aliens back to Alpha Centauri?

[^_^ 5,021]

if you want to reduce the deficit, deport all the people and only keep the corporations. America can basically be a holding company and not a country.

[I AM NOT THAT GUY 5,715]

if you want to reduce the deficit, deport all the people and only keep the corporations. America can basically be a holding company and not a country.

And all this time, I though we were a banana republic.

[^_^ 5,021]

And all this time, I though we were a banana republic.

Bananas don't pay taxes, so you can see why we have a problem.

We need a constitutional convention in which we declare this nation a holding company and not a republic. Then incorporate various groups of people into corporations and anyone left out either gets deported or becomes a slave.

[I AM NOT THAT GUY 5,715]

Bananas don't pay taxes, so you can see why we have a problem.

We need a constitutional convention in which we declare this nation a holding company and not a republic. Then incorporate various groups of people into corporations and anyone left out either gets deported or becomes a slave.

So, when do you plan on moving to the American Southwest?

[^_^ 5,021]

So, when do you plan on moving to the American Southwest?

When senility hits and I no longer know any better.