The Congressional Budget Office’s (CBO) new report
shows that allowing President Bush’s 2001 and 2003 income tax cuts on
income over $250,000 to expire on schedule at the end of 2012 would save
$823 billion in revenue and $127 billion on interest on the nation’s
debt, compared to permanently extending all of the Bush tax cuts.
Overall, this would mean $950 billion in ten-year deficit reduction, a significant step in the direction of fiscal stability.
Prior CBO analysis showed the minimal economic risk this would pose in the short-term. CBO previously concluded that extending only the so-called “middle class” tax cuts on income below $250,000, instead of extending all of the tax cuts, would “be more cost-effective in boosting output and employment in the short run because the higher-income households that would probably spend a smaller fraction of any increase in their after-tax income would receive a smaller share of the reduction in taxes (relative to current law).”
Read more: http://www.offthechartsblog.org/cbo-ending-high-income-tax-cuts-would-save-almost-1-trillion/
Prior CBO analysis showed the minimal economic risk this would pose in the short-term. CBO previously concluded that extending only the so-called “middle class” tax cuts on income below $250,000, instead of extending all of the tax cuts, would “be more cost-effective in boosting output and employment in the short run because the higher-income households that would probably spend a smaller fraction of any increase in their after-tax income would receive a smaller share of the reduction in taxes (relative to current law).”
Read more: http://www.offthechartsblog.org/cbo-ending-high-income-tax-cuts-would-save-almost-1-trillion/
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