ANALYSIS: Pawlenty’s Tax Plan Would Cost $7.8 Trillion Over Ten Years, Triple The Size Of Bush Tax Cuts
chatnoir
headline:
ANALYSIS: Pawlenty’s Tax Plan Would Cost $7.8 Trillion Over Ten Years,
Triple The Size Of Bush Tax Cuts
By Guest Blogger on Jun 7, 2011 at 4:25 pm
Our guest blogger is Michael Linden, Director of Tax and Budget Policy
at the Center for American Progress Action Fund.
Earlier today, presidential candidate and former governor Tim Pawlenty
(R-MN) outlined his economic policy “vision,” which included several
major proposals to cut taxes. Pawlenty called for:
– Cutting the top individual income tax rate down to 25 percent;
– Having just two income tax brackets, 10 percent and 25 percent;
– Eliminating all taxation on capital gains, dividends, and estates;
– Cutting the corporate tax rate down to 15 percent
These proposals, taken together would bestow a massive tax cut on the
wealthiest people in the country. They would also reduce overall
federal revenues to a such a low level that even if Pawlenty’s
draconian, radical spending targets were achieved, deficits and debt
would still soar out of control.
All together, Pawlenty’s tax proposal would generate an average
revenue level of just 13.6 percent of GDP from 2013-2021. That
translates to a tax cut of $7.8 trillion, and that’s on top of $2.5
trillion cost of extending all of the Bush tax cuts (see below for
details on how this estimate was calculated).
Pawlenty also says that he will balance the budget, and cap spending
at 18 percent of GDP. Unfortunately for Pawlenty, his tax plan leaves
him about $8.4 trillion short. Given that reality, he can either
embrace a huge middle-class tax increase, or give up his claims to a
balanced budget. If he doesn’t make up that revenue, deficits and debt
will skyrocket, even if he does slash spending back to levels not seen
in half a century.
Read how we got our numbers after the jump.
The Tax Policy Center estimated the revenue effect of the certain
revenue proposals in the House passed budget plan, including reducing
the top rate to 25 percent, and cutting the corporate rate to 25
percent. To get the additional cost of reducing the corporate rate
further to 15 percent, we simply doubled the TPC estimate of this
provision.
The Congressional Budget Office estimates how much revenue the
government is expected to collect from capital gains and from estate
and gift taxes.
We estimated the revenue effect of removing the 15 percent bracket
based on data from the Internal Revenue Service for 2007 and
extrapolating forward.
El Castor
<wolfb...@mindspring.com> wrote:
>http://thinkprogress.org/economy/2011/06/07/238929/analysis-pawlentys-tax-plan-cost/#more-238929
>
Your source is a biased left wing web site. Please don't waste our
time with this crap.
Evelyn
Amazing that the king of bias complains of it.
Evelyn
Rumpelstiltskin
<wolfb...@mindspring.com> wrote:
>http://thinkprogress.org/economy/2011/06/07/238929/analysis-pawlentys-tax-plan-cost/#more-238929
>
>headline:
>
>ANALYSIS: Pawlenty’s Tax Plan Would Cost $7.8 Trillion Over Ten Years,
>Triple The Size Of Bush Tax Cuts
No problem of course, because the tax cuts will stimulate
business and that will more than make up the difference.
That's what the Republicans have been confidently telling
us since fourteen trillion dollars ago.
<snip>
Rita
<ElPolo...@nowhere.net> wrote:
"Our" time? Speak for yourself.
High Miles
I will. ;-)
Werner
> >http://thinkprogress.org/economy/2011/06/07/238929/analysis-pawlentys...
>
> >headline:
>
> >ANALYSIS: Pawlenty’s Tax Plan Would Cost $7.8 Trillion Over Ten Years,
> >Triple The Size Of Bush Tax Cuts
>
> No problem of course, because the tax cuts will stimulate
> business and that will more than make up the difference.
> That's what the Republicans have been confidently telling
> us since fourteen trillion dollars ago.
>
> <snip>
Tax and spend laws are written in the House which has been in Democrat
control for most of the past 100 years.
Jerry Okamura
changed much at all, regardless of whether taxes were increased or
decreased?
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