January 3, 2013 05:05 PM | | Bookmark and Share

While the White House and members of Congress have described the fiscal cliff deal as raising $620 billion in revenue, the Joint Committee on Taxation (JCT), the official revenue estimator for Congress, has projected that it will actually reduce revenue by $3.9 trillion over a decade.  The widely-used $620 billion figure is calculated by comparing the bill’s provisions making permanent most of the Bush-era tax cuts to a proposal for making permanent all the Bush-era tax cuts.  As explained below, the revenue “savings” is likely to be offset by the business tax cuts that are also included in the bill and which are now likely to be extended over and over throughout the decade and beyond.

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