- Back in 2001, the Bush Tax Cuts were supposed to be temporary. All the old tax laws were supposed to kick back in, starting in 2011. The fact that all those “old taxes” were going to come back into effect was what made the tax cuts “affordable”, back when Alan Greenspan was doing the math.
- Fast-forward to January 2013, as the federal government goes over the Fiscal Cliff. The Republicans finally agreed to some “new taxes” – even though the “new taxes” were less than one-third of the “old taxes” which had been “temporarily suspended” by the Bush tax cuts. (The 10-year cost of the Bush tax cuts was $2.2 trillion. The Fiscal Cliff deal was $617 billion over 10 years.)
- Now it’s March. House Budget Committee Chairman Paul Ryan just released his budget proposal. And gosh, there’s that money again — this time as “budgetary savings”. Here’s what The Hill had to say:
The Ryan budget counts the $600 billion in new tax revenue raised under the January “fiscal cliff” deal as budgetary savings. Ryan also counts hundreds of billions in additional revenue being raised due to rosier economic growth projections…
But wait. There’s more:
The budget would also cut the top individual tax rate from 39.6 to 25 percent as part of an overhaul of the tax code that would eliminate breaks within the system. Like last year’s budget, the overhaul would leave two remaining rates at 10 and 25 percent.
Are the Republicans still trying to increase tax revenues by cutting taxes on the rich?
Confused? Me too.
But here’s the most confusing thing. Ryan describes this as – direct quote, here – “A budget that addresses America’s needs.”
In order to address America’s needs, Ryan proposes to:
- cut Medicare, Medicaid and other health care spending by $2.7 trillion over 10 years;
- cut an additional $1 trillion from “other programs” including food stamps, student loans and federal employee pensions; and
- add $500 billion to the Pentagon’s budget.
So… apparently, Paul Ryan thinks America needs a budget that increases spending on military contractors while cutting spending on actual citizens.
Meanwhile, around this great country of ours…
Sequestration cuts mean that 600,000 young children from low-income families are losing the free milk, fruits and vegetables they had been receiving through a U.S. government nutrition program.
It’s Lent, Rep. Ryan. Been to church lately?
Military contractors? or hungry kids? Where’s your tax money going?