Bush Tax Cuts

What the American People Want

Nov 3, 2010 by Craig Jennings

After securing a Republican majority in the House of Representatives, the top two House Republicans -- Speaker of the House-to-be John Boehner (R-OH) and Marjority Leader-to-be Eric Cantor (R-VA) -- offered their governing philosophy: Listen to the American people.

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CRS: Permanently Extending Bush Tax Cuts to Cost $5 Trillion

Nov 1, 2010 by Gary Therkildsen*

In a report released last week, the Congressional Research Service (CRS) revised the total cost of permanently extending all of the Bush tax cuts to $5.048 trillion over the next ten years. The revised amount, which is significantly higher than the $2.8 trillion figure CRS reported in September, takes into account the cost of servicing the debt due to lost revenue and indexing the alternative minimum tax (AMT) to inflation.*

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News Organization Bemoans Public's Lack of Knowledge on Issue It Rarely Mentioned

Oct 22, 2010 by Sam Rosen-Amy

"What if a president cut Americans' income taxes by $116 billion and nobody noticed?" That's the lede on a recent New York Times article, one talking about a tax cut called Making Work Pay (MWP). President Obama's staff was instrumental in crafting and passing the MWP, which was part of the Recovery Act. The tax cut is stealthy, in that its design spreads the benefits out in small amounts, in each paycheck, as opposed to a single, larger payout at tax time. It was so stealthy that, as the Times article notes, few people know that Obama signed into law a tax cut affecting 95 percent of taxpayers. In fact, the MWP was so stealthy the Times barely mentioned it until this week. So why is the Times surprised no one knows about the tax cut?

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News Media Badly Misreport Orszag

Sep 9, 2010 by Craig Jennings

Former White House budget director Peter Orszag's debut New York Times column has drawn a lot of attention because of its reference to the acceptability of temporarily extending the upper-income '01-'03 tax cuts.

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The Real Significance of Orszag's Column

Sep 7, 2010 by Gary Therkildsen*

Peter Orszag's first opinion piece in the New York Times has certainly made a splash, hasn't it? Media outlets are hyping that the former head of the Office of Management and Budget (OMB) has come out in defiance of the White House to argue that Congress should extend all the Bush Tax Cuts. Take a closer look at Orszag's column, though, and one will recognize this meme as a silly controversy distracting from the real issue raised in the piece.

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On That Terrible, Nebulous Economic Environment That's Forestalling Hiring

Sep 2, 2010 by Gary Therkildsen*

A few months ago, a cacophony of conservative voices began complaining about a hazy cloud of uncertainty looming on the economic horizon. Concerns over the Affordable Care Act, new regulations, and the possibility of new taxes, they claimed, explained continued high unemployment and a lagging recovery. Economist Dean Baker flags the latest example of this garbage meme in a Wall Street Journal article on the Obama administration's deliberations over new economic stimulus measures, and points out for the umpteenth time why it's wrong.

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Tax Cuts for the Rich will Make Rich People Richer

Aug 16, 2010 by Craig Jennings

Letting the '01-'03 tax cuts for upper-income households expire may or may not adversely affect job creation*, but at the end of the day, it's important to keep in mind that these tax cuts for the rich are just another means to transfer large piles of cash to people who already make boatloads of it.

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Expiration of High-Income Tax Cuts Probably OK for the Economy

Aug 9, 2010 by Craig Jennings

As the months slide by and the sun begins to set on the Bush Tax Cuts, a feisty debate in Congress is ensuing on which tax cuts should be kept and which should be left to expire. Although there seems to be universal support for maintaining the middle class tax cuts, there are proponents of retaining the tax cuts for those earning more than $250,000 (i.e. the 33% and 35% brackets). They allege that letting these cuts expire would stifle job creation.

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