Calls to extend Bush tax cuts face difficult pay-as-you-go reality

cal04

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Sun Jul-25-10 07:58 PM
Original message

Calls to extend Bush tax cuts face difficult pay-as-you-go reality

http://thehill.com/blogs/on-the-money/domestic-taxes/110793-calls-to-extend-bush-tax-cuts-face-difficult-fiscal-reality

Democrats who are seeking to extend tax cuts for the wealthy enacted by President George W. Bush might be creating a �Sophie�s Choice� scenario when it comes to paying for their cost.

Pay-as-you-go rules stipulate that extending tax breaks for individuals making more than $200,000 or couples earning more than $250,000 cannot add to the deficit.

But in the limited universe of politically palatable offsets, lawmakers will have to choose between paying to extend these tax breaks or using the revenue for another initiative that might be nearer and dearer to the hearts of their constituents.

�To extend the tax breaks above 200 and 250, it has to be paid for under statutory PAYGO, and that takes money from other purposes,� said House Ways and Means Chairman Sandy Levin (D-Mich.).

(snip)
Chuck Marr, director of Federal Tax Policy at the Center for Budget and Policy Priorities, told The Hill that allowing the upper brackets to reset at higher rates could provide revenue for programs to stimulate the economy.

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sendero

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Sun Jul-25-10 08:00 PM
Response to Original message

1. Any Democrat..

... supporting extending those tax cuts is not a Democrat at all.

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The Magistrate

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Sun Jul-25-10 08:05 PM
Response to Reply #1

2. Hear Hear, Sir!

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Recursion

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Sun Jul-25-10 08:11 PM
Response to Reply #1

4. I rarely call for kicking Reps and Senators out of the caucus

But this is one case where I think we should.

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applegrove

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Mon Jul-26-10 12:21 AM
Response to Reply #1

9. Exactly.

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Kievan Rus

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Sun Jul-25-10 08:07 PM
Response to Original message

3. Who cares if we bankrupt the country? As long as the top 0.5% get theirs!

:sarcasm:

What's really sad is that a lot of Republicans/Teabaggers really do think like that.

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Statistical

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Sun Jul-25-10 08:16 PM
Response to Original message

5. Wouldn't the same also apply to those making under $250K a year?

I fear Congress isn't going to pass anything and all of it will expire. If that happens next working class families will suddenly be suprised when their paycheck in 5% to 10% smaller. Payroll deductions are based on estimated income tax thus will go up if extensions for those making under $250K aren't enacted.

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tritsofme

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Sun Jul-25-10 08:18 PM
Response to Reply #5

6. There is language in the PAYGO legislation that allows for the middle class tax breaks

to be extended without being offset. However for the tax cuts on people making over $250k, the extension would be subject to PAYGO.

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Statistical

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Sun Jul-25-10 08:24 PM
Response to Reply #6

7. Good to know. Kinda surprising that Congress actually thought ahead for once. n/t

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aquart

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Sun Jul-25-10 08:44 PM
Response to Reply #5

8. Oh, do keep spreading that hysterical crap.

No matter how many times they assure you, you are still terrified that this will cost you a penny.

IF YOU PAY INCOME TAXES, IT MEANS YOU HAVE AN INCOME.

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