The Best Way to Reduce the Deficit: Do NOTHING
invite response
2011 Nov 18, 9:01am 1,153 views 2 comments
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nope
2011 Nov 19, 5:26pm
While true, it's pretty clear that Republicans will characterize any expiration of temporary tax cuts as "raising taxes".
They're already pushing for making the FICA cut permanent, even while they bemoan the imbalanced budget.
They don't care about deficits, they care about taxes, period.
— $3.3 trillion from letting temporary income and estate tax cuts enacted in 2001, 2003, 2009, and 2010 expire on schedule at the end of 2012 (presuming Congress also lets relief from the Alternative Minimum Tax expire, as noted below);
— $0.8 trillion from allowing other temporary tax cuts (the “extenders†that Congress has regularly extended on a “temporary†basis) expire on schedule;
— $0.3 trillion from letting cuts in Medicare physician reimbursements scheduled under current law (required under the Medicare Sustainable Growth Rate formula enacted in 1997, but which have been postponed since 2003) take effect;
— $0.7 trillion from letting the temporary increase in the exemption amount under the Alternative Minimum Tax expire, thereby returning the exemption to the level in effect in 2001;
— $1.2 trillion from letting the sequestration of spending required if the Joint Committee does not produce $1.2 trillion in deficit reduction take effect; and
— $0.9 trillion in lower interest payments on the debt as a result of the deficit reduction achieved from not extending these current policies.