The kosbots are at it again...
Boehner steps into the abyss.President Obama and Democrats are saying that the most urgent fiscal issue facing the country is the expiration of tax cuts on income under $250,000. They say we should extend those tax cuts now, but let Bush tax cuts on income over $250,000 expire at the end the year. They also say that we should continue to look for ways to reduce the deficit through long-term spending reductions, but that we can't ignore the need for short-term measures to boost the economyóthings like unemployment benefits and something to replace the payroll tax cut.
But the Bush tax cuts are not the abyss. Spending is.
sourceUsing data from the presidentís FY2013 budget, this chart places the revenue effects of this expiration into proper perspective. According to Office of Management and Budget data, letting the income tax measures expire for top earners will raise revenue by a projected $850 billion over the next 10 years. With the restoration of the estate, gift, and generational-skipping transfer tax parameters (also part of the Bush-tax cuts that affect high earners), revenue is projected to increase about $967 billion over the next 10 years.
This sounds like a lot of money, but letís put this number into perspective by looking at how much the federal government will be spending over the course of the next 10 years. Drawing on the presidentís own data, the chart above shows that the government will spend more than $46.9 trillion. Even without interest payments, spending will still amount to $41.2 trillion. Moreover, the total interest paid on the debt will reach $5.7 trillion.
Now compare the size of the tax revenue increase to the total amount of spending, and you will see where the problem lies. Even if the president manages to collect an additional $967 billion by letting some of the Bush-Era tax cuts expire, Washington still has a spending problem.
The two bars on the left side of the chart are not the abyss. The one on the right is.