Recently in Bush Tax Policies Category

President Obama’s proposal to extend most, but not all, of the Bush tax cuts, would result in 1.9 percent of Americans losing some portion of the Bush income tax cuts. In 22 states, less than 1.5 percent of residents would lose some portion of their income tax cuts under the President’s proposal.

Read the fact sheet.

How U.S. taxpayers and taxpayers in each state would be affected by two competing approaches to the Bush tax cuts. Report with figures for the entire U.S. plus reports with figures specific to each state and the District of Columbia.

Check Out the Special Report Landing Page

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Read the PDF Version of this Report.

The tax cuts enacted in 2001 and 2003 under President Bush are scheduled to expire at the end of 2012. As we approach the expiration date, there’s a growing debate about whether and how much of these temporary tax breaks should be extended. President Obama has proposed extending the Bush tax cuts for all taxpayers on incomes up to $250,000 ($200,000 for single filers). Some lawmakers have suggested moving the threshold to $1 million.

Based on our preliminary estimates:

  • High-income taxpayers still get a big tax cut. Using either threshold, even high income taxpayers still get to keep most of their Bush tax cuts. That’s because thetax cuts – primarily lower rates – still apply to income below the thresholdamount.
  • Ending the breaks for incomes over $250,000 saves substantial revenue. Extending the Bush tax cuts for only the first $250,000 of families’ incomes saves the U.S. Treasury an estimated $60-70 billion in revenue for one year alone, 2013, compared to extending all of the tax cuts.
  • Moving the threshold to $1 million is costly. Extending the Bush tax cuts for the first $1 million of a family’s income saves 43 percent less revenue than the savings estimated with a $250,000 threshold.
  • Millionaires get 50 percent of the additional tax breaks from moving the threshold to $1 million. About half of the additional tax breaks resulting from moving the threshold from $250,000 to $1 million actually go to taxpayers with income over $1 million – because they’re getting additional tax breaks on all of their income up to $1 million.

This presentation was given to participants of the Ecumenical Advocacy Days, an event that brings the perspectives of faith-based organizations to Capitol Hill. The presentation explains federal tax issues that are being debated today.

Read the presentation.

The National Priorities Project, working in partnership with Citizens for Tax Justice, has unveiled a new website that presents a running tally of the cost of the Bush tax cuts for the richest five percent, who now receive almost half of the total tax cuts.

Visit costoftaxcuts.com

Both sides of the debt ceiling debate want to extend all or most of the expiring Bush tax cuts. And neither side has proposed spending cuts or tax increases large enough to offset the tremendous cost of such an extension.

Read the fact sheet

Extending the Bush tax cuts from 2013 through 2022 would cost $5.4 trillion.

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Another Decade of Bush Tax Cuts Will Cost More than Twice as Much as the First Decade

Ten years ago, on June 7, 2001, President George W. Bush signed into law the first of several tax cuts that drove the balanced budget he inherited from President Clinton deep into the red. Last year, Congressional supporters of Bush’s policies pushed through an extension of these tax cuts through the end of 2012. Many lawmakers want to extend the Bush tax cuts again into 2013 and beyond, which would almost double the federal budget deficit.

See the press release, national data, and state-by-state fact sheets

(Updated to include state-by-state figures)

The compromise tax plan agreed to by President Obama and congressional Republicans would provide more than a quarter of its tax cuts to the best-off one percent of all Americans. That’s almost double the share of the tax cut that the President proposed to give the highest earners. At the same time, the new tax plan would reduce taxes, and increase the budget deficit, by $424 billion in 2011 alone. That’s 40 percent more in tax cuts than the President had earlier proposed.

Read the report.

There seems to be a lot of confusion in the media and among the public about President Obama’s plan to let the Bush income tax cuts expire for joint incomes above $250,000 and single incomes above $200,000. Many people seem to think that couples and singles who make more than these amounts will lose all of their Bush tax cuts. This is not even slightly true.

Read the report.

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