Pelosi’s ‘Middle Class’ Tax Cut Extension Would Largely Benefit Millionaires, Cost Billions In Revenue
House Minority Leader Nancy Pelosi (D-CA) issued a statement Wednesday calling for a permanent extension of the Bush tax cuts for the middle class, demanding House Speaker John Boehner (R-OH) schedule a vote on the plan as soon as possible. But her proposal differs from others offered by Democrats, including President Obama, that call for an extension of the rates for incomes below $250,000. Instead, Pelosi wants a permanent extension of the Bush tax cuts for incomes up to $1 million, the statement said.
“Democrats believe that tax cuts for those earning over a million dollars a year should expire and that we should use the resulting revenues to pay down the deficit,” Pelosi said.
Her plan, however, would cost the government billions in revenue compared to Obama’s plan, and though she has billed it as a tax cut for the middle class, half of its benefits would go to millionaires, according to analysis from Citizens for Tax Justice:
Looks like the far left socialist are reckless about this. Pelosi's shift would cost 43% of $60 billion and $70 billion a year that the left were hoping to raise from cutting the Bush tax cuts at 250,000. Sixty billion, 40 billion, 43% less... none of that money makes a dent in the national debt. Pelosi is just looking for a little political wiggle room, the hard left is just looking for more "share the wealth" socialism.
Pelosi's district has a high cost of living, and Gov. Brown wants to pass his own high income tax increase to fund California's record debt levels, so maybe this is hitting home to some of her voters and fundraisers.
Obama's repeal of the Bush tax cuts will actually hurt the voters in high income blue states more than red states which tend to have lower incomes and costs of living.
Thomas Sowell: There are no solutions, just trade-offs.
