The Center on Budget and Policy Priorities released a report yesterday on House Minority Leader Pelosi’s proposal to extend the Bush tax cuts for all those earning less than $1 million. Among their findings is that the proposal will reduce available revenue by $366 billion or nearly half than the lower threshold of $250,000 that has been discussed. Moreover, as the Citizens for Tax Justice found last week, the benefits of this proposal will overwhelmingly go to millionaires.
From the report:
Extending tax cuts for high-income people also is a poor way to support the economic recovery. An economy in a recession or the early stages of recovery needs more spending, not more saving. But research shows that high-income taxpayers save, rather than spend, a greater share of any tax cut they receive than low- and moderate-income households.