So here’s Congress’ idea of soaking the rich, and why it won’t make any difference.
Presently the discussion in Congress on the Bush tax cuts (BTC) seems to be favoring extending them for all but the uber-rich. There is a study out from The Joint Committee on Taxation that shows the results of that. A story on Bloomberg highlighted some features of the wealth re-distribution that would result when the BTC expire.
The report breaks down the uber-rich into three categories:
1. Those with incomes between $200,000 – 500,000
These folks would pay about $2 billion more in 2011 taxes.
2. Those with incomes betweeen $500,000 and $1 million
These folks would payabout $6 billion more in 2011 taxes
3. Those with incomes above $1 million
This group really gets soaked, paying an additional $30 billion more. According to Bloomberg, that’s about $95,238 each.
Add it all up, and it’s a tax increase of $38 billion, which is . . .
- about one week’s worth of the July budget deficit.
- about 37 days worth of the interest on the Federal debt
This is from a Strategas note of this morning: analysis being done on the higher-income components of the Bush tax cuts, which says lifting the top two income tax rates will lead to just a -0.2 pct of GDP drag since the provisions will only raise $40bn in tax revenue.