Pundits are pointing to new data released by the Joint Committee on Taxation as proof that extending a policy of tax cuts for the wealthiest Americans will saddle the U.S. with more debt.
The study indicates that renewing tax breaks for the top two percent of income earners will add $36 billion to the nation’s debt level in 2011. The cuts, enacted in 2001, and then again in 2003 under President George W. Bush, would grant households making over $1 million a tax cut of roughly $100,000 next year.
Republicans, by and large, have supported the continuation of the cuts, arguing that keeping them alive will make it easier for small business owners to hire. Democrats have countered by accusing the GOP of distorting the definition of ‘small business owner,’ and say the cuts neglect those in need.
In an opinion piece today, The Guardian’s Michael Tomasky accused Republicans of siding with the rich over the middle class. “If it’s for millionaires, it’s good, Period,” he wrote. “It’s never been quite this naked, but there it is.”
Top Democrats agree with Tomasky’s assertion.
“I don’t see any reason why we should renew a tax cut that only gives a tax cut to the wealthiest people in America, increases the deficit, and doesn’t create jobs,” said House Speaker Nancy Pelosi (D-Calif.) in an interview. “That doesn’t make any sense.”
Yet, data also shows that the previous administration’s plan is almost as generous for middle class Americans as the one proposed by President Obama. For example, under the President’s proposal, an individual making between $50,000 and $75,000 per year would receive an average tax cut of only 13 dollars more than he or she would under the Bush plan.
Republicans say allowing the current cuts to expire equates to a giant tax hike.
“The Democratic leadership is looking to push one of the biggest tax increases in American history,” said Parish Braden, a spokesman for the RNC. “Even members of the Obama administration have said raising taxes in this climate is not good for the economy.”
In the end, Congress may base its decision on what to do on the concern over the nation’s mounting level of debt, currently over $13 trillion. In that case, the Obama tax cuts would add $202 billion to the debt next year, compared to $238 billion should the Bush cuts be extended.
New Congressional Analysis On Tax Cuts Sparks Debate
Pundits are pointing to new data released by the Joint Committee on Taxation as proof that extending a policy of tax cuts for the wealthiest Americans will saddle the U.S. with more debt.
The study indicates that renewing tax breaks for the top two percent of income earners will add $36 billion to the nation’s debt level in 2011. The cuts, enacted in 2001, and then again in 2003 under President George W. Bush, would grant households making over $1 million a tax cut of roughly $100,000 next year.
Republicans, by and large, have supported the continuation of the cuts, arguing that keeping them alive will make it easier for small business owners to hire. Democrats have countered by accusing the GOP of distorting the definition of ‘small business owner,’ and say the cuts neglect those in need.
In an opinion piece today, The Guardian’s Michael Tomasky accused Republicans of siding with the rich over the middle class. “If it’s for millionaires, it’s good, Period,” he wrote. “It’s never been quite this naked, but there it is.”
Top Democrats agree with Tomasky’s assertion.
“I don’t see any reason why we should renew a tax cut that only gives a tax cut to the wealthiest people in America, increases the deficit, and doesn’t create jobs,” said House Speaker Nancy Pelosi (D-Calif.) in an interview. “That doesn’t make any sense.”
Yet, data also shows that the previous administration’s plan is almost as generous for middle class Americans as the one proposed by President Obama. For example, under the President’s proposal, an individual making between $50,000 and $75,000 per year would receive an average tax cut of only 13 dollars more than he or she would under the Bush plan.
Republicans say allowing the current cuts to expire equates to a giant tax hike.
“The Democratic leadership is looking to push one of the biggest tax increases in American history,” said Parish Braden, a spokesman for the RNC. “Even members of the Obama administration have said raising taxes in this climate is not good for the economy.”
In the end, Congress may base its decision on what to do on the concern over the nation’s mounting level of debt, currently over $13 trillion. In that case, the Obama tax cuts would add $202 billion to the debt next year, compared to $238 billion should the Bush cuts be extended.