No Johann, not really

To fight furiously to keep the gigantic Bush tax cuts for the elite richest two percent of Americans, even though this alone will add two trillion dollars to the deficit over the next decade.

That is, I think, an estimate of the entirety of the Bush tax cuts if they were extended.

Letting President Bush’s tax cuts for families making over $250,000 expire as scheduled at the end of 2010, while temporarily redirecting this money to more efficient ways of boosting the economy while it is weak, would help the nation address two key challenges: short-term economic weakness (with nearly one in ten Americans out of work) and unsustainable long-term deficits.

Over the next year or two, policymakers could channel the savings from letting the tax cuts expire — about $40 billion in 2011

Still a big number, yes, but not a cumulative $2 trillion over a decade.

2 thoughts on “No Johann, not really”

  1. Also, under the US tax code, a large number of the “richest 2%” of taxpayers are actually businesses filing as “S-Corporations,” in which the owner’s profits and losses are filed on an individual tax return. Almost 50% of the S-Corps that are not merely nugatory – that have employees – fall under the “richest Americans” rubric. Not even liberals think that raising taxes on these businesses will not directly affect economic growth and employment levels – which would reduce total national taxable income and thus tax receipts by a far greater number than the notional $40 billion just waiting to be collected. If the taxes are raised, the reaction of individual business owners will erase that $40 billion in no time.

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