Uncategorized

Congress Back in DC, Decision on Bush Tax Cuts Still Pending

Congress returned to DC this week and will likely take up a continuing resolution that will fund critical public functions past October 1st. What is unlikely to be deliberated at this point is what to do with the tax cuts that were put in place during the Bush and Obama administrations.  The tax cuts on income over $250,000 have presented one of the sticking points for Congressional agreement. The House voted to extend them this summer and the Senate voted to end them.

In North Carolina, as a new infographic shows, just 1.4% of North Carolinians would benefit from continuing the tax cuts on income over $250,000.  Those North Carolinians would see $30,000 more in tax cuts under the House plan which extends them while lower-income North Carolinians under the same plan would actually see their tax cut shrink to just $500.

Beyond the impact on North Carolinians of different means, though, the decision about the Bush Tax Cuts on income over $250,000 is also about the best allocation of resources during a slow economic recovery.  And the evidence shows that for every dollar lost by the federal government for making the Bush Tax Cuts permanent, just $0.35 in economic output would be gained, far behind the significant boost provided by unemployment insurance benefits, food stamp payments and infrastructure spending.

It is also important to note that the expiration of all the Bush Tax Cuts would usher in tax rates in place during the 1990s, a time when the economy was performing better than it is today.  Moreover, the Senate plan passed this summer would actually extend the tax cuts for 98 percent of Americans and partially extend the tax cuts for the richest 2% of Americans.

One Comment


  1. david esmay

    September 12, 2012 at 4:13 pm

    End the tax holiday and vote the GOP out of congress.

Check Also

Senate tax plan would eliminate health insurance coverage for millions to pay for tax cuts for richest Americans

The Senate tax bill released last week follows ...

Top Stories from NCPW

  • News
  • Commentary

A pivotal legislative task force may be just beginning its dive into North Carolina’s school funding [...]

The controversy over “Silent Sam,” the Confederate monument on UNC’s Chapel Hill campus, has been ra [...]

North Carolina tries to mine its swine and deal with a poop problem that keeps piling up A blanket o [...]

This story is part of "Peak Pig," an examination of the hog industry co-published with Env [...]

Republicans in Congress are rushing to advance a tax reform bill that balloons the federal deficit s [...]

The post Charitable donations and the GOP’s chopping block appeared first on NC Policy Watch. [...]

13---percentage of households in the U.S. that were food insecure on average from 2014-2016. Meaning [...]

Five years ago, the U.S. Department of Justice (DOJ) filed a jaw-dropping civil rights lawsuit again [...]

Spotlight on Journalism

We invite you to join a special celebration of investigative journalism! The evening will feature Mike Rezendes, a member of the Pulitzer Prize-winning Boston Globe Spotlight Team known for their coverage of the cover-up of sexual abuse in the Catholic Church.

Tickets available NOW!

Spotlight On Journalism

This event will benefit NC Policy Watch, a project of the North Carolina Justice Center. Sponsorship opportunities available now!

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more