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.