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News & Politics News & Politics

REPORT: Expiration Of High-End Bush Tax Cuts Would Have Little Effect On Economic Growth

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United States is approaching the so-called “fiscal cliff” at the end of 2012, when a set of policies enacted by the debt deal reached in August 2011 will go into effect. In addition to massive spending cuts, several tax provisions will expire, including the full Bush tax cuts.

Though both the GOP and Democrats agree that the low-end Bush tax cuts, those that give everyone a tax cut but primarily affect the middle class, need to be extended, Republicans have blocked that in order to leverage an extension of the upper-income tax cuts. The logic, Republicans argue, is that not doing so will raise taxes on “job creators” at a time when the economy can least afford it.

An analysis of the fiscal cliff policies by the Economic Policy Institute, however, found that the cost of the Bush tax cuts —and particularly those for high-income earners —far outweigh the benefits:

EPI’s analysis found that letting the entire Bush tax cuts package expire would cause “just over one-third” of the damage of letting the stimulus measures (primarily made up of the payroll tax cut and other middle class tax cuts) expire and less than half the damage of the spending cuts. The high-end Bush tax cuts, as the chart shows, account for 7.3 percent of the cost of the fiscal cliff policies but just 2.3 percent of the economic benefit, meaning their expiration would save a substantial sum of money with a negligible effect on economic growth.

The findings are similar to an earlier report from the Congressional Budget Office that found the expiration of the high-income Bush tax cuts, once multipliers are added, would cause far less economic damage than spending cuts to the discretionary budget favored by Republicans.
http://www.epi.org/publication/ib338-fiscal-cliff-obstacle-course/

Posted on CafeMom Mobile
by on Sep. 24, 2012 at 8:50 AM
Replies (11-20):
Carpy
by Platinum Member on Sep. 24, 2012 at 10:22 AM
1 mom liked this
No matter how much he raised them it did not equal what he cut. And the democrat congress forced the increases on him in exchange for backing his push to topple The USSR. Reagans cuts gave us the nineties.

Quoting mommom2000:

That's why Reagan had to go back and raise taxes 11 times. II is a fact that the Bush tax cuts have added to the deficit, not an opinion.


Quoting itsmesteph11:


 


Quoting mommom2000:


 


Quoting Carpy:


Tax cuts do not cost money.  To think so, assumes all money belongs to the government and they just allow you to have what they deem you deserve.  Government does not live within its means.  That is not the fault of the workers who earn their money.


LOL Of course they do,where do you think the government receives it's revenue. Saying taxes don't matter is one of the more crazier right wing talking points. Bush cut the taxes and did it spur all this growth like he said.  Trickle trickle it's a myth.


 Tax cuts under Reagan and Bush brought in more money to the treasury. It's a fact that liberals hate to admit.  



Posted on CafeMom Mobile
itsmesteph11
by Silver Member on Sep. 24, 2012 at 10:53 AM
1 mom liked this

 They didnt' have much of a choice. The Republicans had congress  lol 

Quoting mommom2000:

Is that true of the Clinton years? Higher taxes plus surplus.  Obama and the democrats were willing to put spending cuts on the table,the other side says no revenue.  You need both to fix this problem, spending cuts and revenue.  They were willing to do that.

Quoting ambertreas76:

Tax cuts do not cost the government money.  High taxation does.  When the taxes are elevated, so is government spending.  In 2013 our taxes will be increased by 2 billion at least which will result in 8 billion or more government spending.  All of the policies that take effect which raise taxes, raise government spending.  Once that starts to happen, tax increase is needed again, increasing spending even more.  Look into the pillars of Reaganomics for some facts on what happens with increased taxation.  

Also, higher taxes do result in more administration kickbacks... ie more money in the admistration pocket and less in ours.

 

 

MsDenuninani
by Bronze Member on Sep. 24, 2012 at 1:43 PM
2 moms liked this


Quoting itsmesteph11:

 

Quoting mommom2000:

 

Quoting Carpy:

Tax cuts do not cost money.  To think so, assumes all money belongs to the government and they just allow you to have what they deem you deserve.  Government does not live within its means.  That is not the fault of the workers who earn their money.

LOL Of course they do,where do you think the government receives it's revenue. Saying taxes don't matter is one of the more crazier right wing talking points. Bush cut the taxes and did it spur all this growth like he said.  Trickle trickle it's a myth.

 Tax cuts under Reagan and Bush brought in more money to the treasury. It's a fact that liberals hate to admit.  

Obama is advocating returning marginal tax rates to Reagan-era levels; a fact that conservatives ignore.

MsDenuninani
by Bronze Member on Sep. 24, 2012 at 1:46 PM
1 mom liked this

I'm amused right now that a lot of the discussion here so far brings up past tax policy, which came about because of a President and Congress who worked together.

annelauer
by on Sep. 24, 2012 at 5:14 PM
1 mom liked this


Quoting Carpy:

Tax cuts do not cost money.  To think so, assumes all money belongs to the government and they just allow you to have what they deem you deserve.  Government does not live within its means.  That is not the fault of the workers who earn their money.

That is like saying quitting your job does not cost money.  Technically, that is true.  It is also ridiculous and short-sighted.  It will create a situation where you don't have revenue.  Please start looking past the end of your nose.

LucyMom08
by Silver Member on Sep. 24, 2012 at 5:24 PM
1 mom liked this

 And what conservatives hate to admit is that, while beneficial in short term growth, these cuts are unrealistic and not sustainable to long term growth and economic advantage...

 

Putting a bandaid on a gaping wound might stem the flow of blood, but it will not heal the wound...and if the wound is arterial, the person will still eventually bleed out...

Quoting itsmesteph11:

 

Quoting mommom2000:

 

Quoting Carpy:

Tax cuts do not cost money.  To think so, assumes all money belongs to the government and they just allow you to have what they deem you deserve.  Government does not live within its means.  That is not the fault of the workers who earn their money.

LOL Of course they do,where do you think the government receives it's revenue. Saying taxes don't matter is one of the more crazier right wing talking points. Bush cut the taxes and did it spur all this growth like he said.  Trickle trickle it's a myth.

 Tax cuts under Reagan and Bush brought in more money to the treasury. It's a fact that liberals hate to admit.  

 

LucyMom08
by Silver Member on Sep. 24, 2012 at 5:28 PM
1 mom liked this

 Yup...but sadly, in 2012, compromise and cooperation are dirty words...

Quoting MsDenuninani:

I'm amused right now that a lot of the discussion here so far brings up past tax policy, which came about because of a President and Congress who worked together.

 

Sisteract
by Socialist Hippie on Sep. 24, 2012 at 5:33 PM

Obstruction and One term president-

That was the goal of the golden congress of 2010.

Deadbeat, freeloaders.

Wonder if MR has disdain for those folks... doing nothing on the tax payer's dime?

Quoting LucyMom08:

 Yup...but sadly, in 2012, compromise and cooperation are dirty words...

Quoting MsDenuninani:

I'm amused right now that a lot of the discussion here so far brings up past tax policy, which came about because of a President and Congress who worked together.

 


Separation of church and state is for the protection of BOTH church and state.
Leading with hate and intolerance only leads to MORE hate and intolerance.
MsDenuninani
by Bronze Member on Sep. 24, 2012 at 5:35 PM


Quoting Sisteract:

Obstruction and One term president-

That was the goal of the golden congress of 2010.

Deadbeat, freeloaders.

Wonder if MR has disdain for those folks... doing nothing on the tax payer's dime?

Quoting LucyMom08:

 Yup...but sadly, in 2012, compromise and cooperation are dirty words...

Quoting MsDenuninani:

I'm amused right now that a lot of the discussion here so far brings up past tax policy, which came about because of a President and Congress who worked together.

 


Such a great point.  And, really, really pisses me off!

LucyMom08
by Silver Member on Sep. 24, 2012 at 5:35 PM

 Makes me sick, personally...

Quoting Sisteract:

Obstruction and One term president-

That was the goal of the golden congress of 2010.

Deadbeat, freeloaders.

Wonder if MR has disdain for those folks... doing nothing on the tax payer's dime?

Quoting LucyMom08:

 Yup...but sadly, in 2012, compromise and cooperation are dirty words...

Quoting MsDenuninani:

I'm amused right now that a lot of the discussion here so far brings up past tax policy, which came about because of a President and Congress who worked together.

 


 

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