"Senate Tax-Cut Plan Would Add $857 Billion to U.S. Debt," or will the Tax Deal really cost at least $1,472.92 trillion?

"...The congressional Joint Committee on Taxation, which estimates the revenue effects of tax legislation, said the provisions would cost the government $801.3 billion in forgone revenue over 10 years. Extending unemployment benefits for 13 months, another feature of the package, would cost $56 billion, the Obama administration has said."

$857 Billion @ 4% x 30 years = $1,472.92 trillion

$857 Billion @ 5% x 40 years = $1,983.56 trillion

$857 Billion @ 6% x 50 years = $2,706.77 trillion

$857 Billion @ 7% x 75 years = $4,523.35 trillion

The proposal would extend Bush-era tax cuts for all levels of income. A two-year extension of those rates would cost $407.6 billion, according to the Joint Committee on Taxation.

...The tax agreement lacks revenue-raising offsets."

Ryan J. Donmoyer

 

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