Register to Vote: Rock the Vote, powered by Credo Mobile

HOME

ABOUT US

OUR ISSUES

Information & Access

Nonprofit Advocacy

Regulatory Policy


PRESS ROOM

ACTION CENTER

PUBLICATIONS

THE WATCHER

OUR BLOGS


SIGN UP

Receive news, updates, and alerts!

DONATE

Help support our work


OTHER SITES

FedSpending.org

RTK NET

NPAction

Working Group on Community Right-to-Know

Citizens for Sensible Safeguards

Open the Government

OMB Watch Logo

Demanding a federal budget that is fair, responsible, and meets our nation's priorities

Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Friday, August 24, 2007

Speaking of Bush's Revenue Reduction Program

I would also like to point out how Bush's revenue slashing affects the AMT's reach into the middle class. The Bush tax regime depends on over 13 million taxpayers to subsidize tax cuts for the wealthy. Granted some of those 13 million are wealthy, but many are not. The chart below shows how AMT liability per income group changes because of the 2001-2003 tax cuts

Percent of taxpayers that are AMT liable in 2017
Income (thousands of dollars)Tax Cuts ExpireTax Cuts Extended
100-20061.792.3
75-10053.767.2
50-7530.138.8
30-5012.213.0


Posted by Craig Jennings, 04:38:47 PM



The Baseline

CBO's The Budget and Economic Outlook: An Update is a statute-directed baseline: "In accordance with long-standing procedures, CBO's projections assume that current laws and policies remain in place." So, the revenue figures in years 2010-2017 reflect a scenario in which the 2001/2003 tax cuts expire (as legislated). If Congress does nothing - that is let the sun set on tax cuts, the Treasury will see surpluses starting in 2012. But if those tax cuts are extended, it's a river of red ink.

Federal Budget Surplus/Deficit(-) (billions of dollars)
201220132014201520162017
Tax Cuts Expire6236658558109
Tax Cuts Extended-187-238-218-208-245-207

There's really nothing new here. I just wanted to point out - again - how expensive the Bush Revenue Reduction Program is.



Posted by Craig Jennings, 10:35:36 AM



Thursday, August 23, 2007

CBO Undercuts Bush Claims on Tax Cuts
What Was the Point ... Is Not at this Point

To follow up on Craig's post below on the CBO budget outlook released today, the Center on Budget points out that CBO flatly contradicts the President's claim that "tax cuts are boosting the economy and significantly improving the budget outlook for coming years."

The outlook for the economy and the budget in 2008 through 2017 has not improved significantly since the beginning of this year... The modest improvements in CBO's projections of revenues and deficits for years after 2007 ... were due to factors that cannot be attributed to the President's tax cuts, notably higher-than-anticipated inflation this year, a slightly larger projected labor force, and an increase in the projected share of GDP represented by corporate profits.

It is worth noting as well that the Bush tax cuts have probably already had far more significant economic and budgetary impact (for good or ill) than they might still have today, let alone in the "coming years," which in any case end long before 2017, since the tax cuts expire in 2010.

As we have reported, CBO had a look last month at the economic (negligible) and budgetary (devastating) impact of the Bush tax cuts, at this stage of the game, 2007.

Or is it simply too late for the White House to revise stale talking points, at this point?



Posted by Dana Chasin, 06:22:47 PM



CBO: Budget and Economic Outlook, an Update
CBO has released the August update to its Budget and Economic Outlook. The nickel version:
  • FY 2007 deficit is expected to be $158 billion - about $90 billion less than last year's deficit
    • FY 2007 deficit is expected to be $158 billion - about $90 billion less than last year's deficit
    • Revenues are higher than were projected in March due to higher-than-expected income from personal income taxes
    • Spending was also higher than was projected, mostly because of the $120 billion supplemental spending package appropriated in May for the wars in Iraq and Afghanistan and for Gulf Coast recovery.
    • The long-term budget outlook "remains on an unsustainable path" due to rising costs of health care.


    Posted by Craig Jennings, 10:38:42 AM



    Tuesday, August 07, 2007

    Senate Schedules Floor Vote for Nussle

    Senate Majority Leader Harry Reid has announced that the Senate will vote on the nomination of Jim Nussle to be the new Director of the Office of Management and Budget on Monday, September 4 - the first day back from the August recess. Reid announced there will be three hours of debate on the nomination beginning at 2:30 pm. One hour each for the chairman and ranking member of the budget committee, and one hour controlled by Sen. Bernie Sanders (I-VT).

    Sanders has announced a hold on Nussle's nomination because he has serious concerns about the nominee and his philosophical differences with the administration's fiscal policies. Sanders said:

    President Bush is completely out of touch with the economic realities facing working families in America. Bush needs to hear the truth, not an echo. He needs a budget director who will make him face the facts, not fan his fantasies.





    Posted by Adam Hughes, 05:49:06 PM



    CBO's Monthly Budget Update - August 2007
    Receipts in July 2007 were about $10.5 billion (or 7 percent) higher than they were in July 2006, CBO estimates. Higher withholding for individual income and payroll taxes explains the gains, with an increase of almost $11 billion (or 8 percent). Net corporate receipts for the small number of companies that make income tax payments in July were lower by about $1 billion (or 10 percent).
    Outlays were $15 billion (or 8 percent) greater this July than they were last July, CBO estimates. Defense spending accounted for the strongest growth, up by about $6 billion (or 14 percent), largely in the areas of operations, maintenance, and procurement. Medicare outlays grew by $4 billion (or 13 percent) after adjusting for timing shifts, while spending for Social Security and net interest on the public debt were up by $3 billion (or 6 percent) and $2 billion (or 8 percent) respectively.

    The CBO also reports that through the 10 months in FY 2007, the federal budget deficit was $158 billion. Compared to last year, revenues are rising more slowly - but up by 7 percent, and outlays are up 3 percent.

    Monthly Budget Review, August 6, 2007



    Posted by Craig Jennings, 09:32:05 AM




    Latest Entries by Theme

    All Themes

    Appropriations & Spending

    Federal Tax Policy

    Income/Wealth Inequality

    Budget Projections

    Government Performance

    Estate Tax

    State Fiscal Policy

    Watcher

    Entitlements

    Budget Process

    Debt & Deficit

    Oversight & Enforcement

    Transparency

    Privatization

    Contact Us

    Most Recent Entries for Federal Budget & Tax

    Approps Update: Senate Back to Work

    OMB Releases FY 2008 Earmarks Data

    DPC Hearing on Iraq Contracting This Week

    Monthly Budget Review: June, 2008

    Congress to End White House Forest Conservation Program

    Fiscal Policy Agenda Returns to Washington

    Bush Signs War Supplemental

    BudgetBlog on Hiatus for Holiday: Happy Fourth Everyone!

    The Heat Must Be Getting to Them

    GAO Report Finds Private Medicare Providers Prefer Profits Over Providing Better Service

    Archived Entries for Budget Projections

    July

    June

    May

    April

    March

    February

    January

    December, 2007

    November, 2007

    October, 2007

    September, 2007

    August, 2007

    July, 2007

    June, 2007

    May, 2007

    April, 2007

    March, 2007

    February, 2007

    January, 2007

    October, 2006

    September, 2006

    August, 2006

    July, 2006

    June, 2006

    January, 2006