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New Analysis of Bush Tax Cut Proposal

Posted By Alexandra Sirota On June 1, 2012 @ 2:44 pm In Uncategorized | Comments Disabled

The Center on Budget and Policy Priorities released a report [1]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 [2] 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.[2]   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.

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URL to article: http://pulse.ncpolicywatch.org/2012/06/01/new-analysis-of-bush-tax-cut-proposals/

URLs in this post:

[1] Center on Budget and Policy Priorities released a report : http://www.cbpp.org/cms/index.cfm?fa=view&id=3785

[2] Citizens for Tax Justice: http://ctj.org/ctjreports/2012/05/first_look_extending_the_bush_tax_cuts_for_income_up_to_1_million.php

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