Another decade of these lower tax rates for the wealthiest 5 percent of Americans would cost the US Treasury around $2 trillion – more than the amount of deficit reduction (at least $1.2 trillion) the debt super committee must find.
$11.6 million every hour of every day. That’s how much money would be flowing into the US Treasury, but isn’t, as a result of the Bush tax cuts for the wealthiest 5 percent of Americans.
Though they were originally set to expire in December 2010, President Obama extended the Bush tax cuts through 2012, and some members of Congress propose making them permanent. Another decade of these lower tax rates for the wealthiest 5 percent – taxpayers who make at least $176,000 and on average $477,453 – would cost the Treasury around $2 trillion, according to analysis by Citizens for Tax Justice, and corroborating analysis by other tax organizations.
Incidentally, $2 trillion is more than the amount of deficit reduction mandated (at least $1.2 trillion) in the Budget Control Act. That’s the August deal that prevented a government shutdown and possible US debt default after the congressional standoff on whether to raise the US debt ceiling. The law formed a Congressional Joint Select Committee on Deficit Reduction, known as the “super committee,” now tasked with finding a trillions plus in savings – an amount that wouldn’t even fully offset another decade of Bush tax cuts for the wealthiest.