The Washington Post reports that the analysts for the non-partisan Congressional Joint Committee on Taxation have been crunching some numbers on both the Democratic and Republican tax proposals. With that Bush tax cuts due to expire, we need a new plan.
As WaPo's Lori Montgomery reports...
A Republican plan to extend tax cuts for the rich would add more than $36 billion to the federal deficit next year -- and transfer the bulk of that cash into the pockets of the nation's millionaires, according to a congressional analysis released Wednesday.
Hmmm. But I thought Republicans were against (right now) any kind of deficit spending... except for wars and associated profiteers, of course. Anyway...
New data from the nonpartisan Joint Committee on Taxation show that households earning more than $1 million a year would reap nearly $31 billion in tax breaks under the GOP plan in 2011, for an average tax cut per household of about $100,000.
And the distributions of the tax cuts look kind of like this:
Wow! That sure is a big gray dot there.
Meanwhile, there are some who think both plans are a bad idea...
Given the soaring national debt, many economists deem both proposals unaffordable. Even some Republicans, including Reagan administration budget chief David Stockman and former Fed chairman Alan Greenspan, have urged lawmakers to let them expire and allow income tax rates to pop back up to their levels during the Clinton administration.
Both parties are pushing on. The Democrats want to live up to Obama's campaign pledge not to raise taxes on the middle class. Meanwhile, Republicans are demanding support for their high-dollar plan, despite the deficit and the rather selfish and unseemly "let them eat cake" appearance, because they know that people who make over a million a year are really hurting. Can you imagine having to go from the 25 year old Macallen to the 12 year old stuff? Outrageous!
I'm inclined to roll with the President and the Democrats on this one, but I actually think Stockman and Greenspan are correct.