BUSH TAX CUTS MORE EXPENSIVE THAN HEALTHCARE PLANS

Center for Tax Justice - The tax legislation enacted under President George W. Bush from 2001 through 2006 will cost $2.5 trillion over the 2001-2010 period. This includes the revenue loss of $2.1 trillion that results directly from the Bush tax cuts as well as the $379 billion in additional interest payments on the national debt that we must make since the tax cuts were deficit-financed.

Over the upcoming decade (2010-2019), the costs of the health care proposals approved by three committees in the U.S. House of Representatives are projected to be around $1 trillion.

Under the House bills, roughly half of the costs would be offset with savings in our existing health care programs, while the other half would be offset with a surcharge on the incomes of wealthy taxpayers.6 A previous analysis by CTJ has shown that this surcharge is a reasonable approach to 7Citizens for Tax Justice, “Health Care Reform Financing Options: House Proposal to Apply a Graduated Surcharge to Incomes Over $350,000,” updated July 15, 2009.