Tax Cuts

Tax Cuts Decrease Federal Revenue by $1.7 

Making the 2001, 2002, and 2003 tax cuts permanent would reduce revenues by $1.7 trillion through 2014.  If we include the added interest payment to national debt, this figure rises to $2.0 trillion.  Tax revenues pay for programs like health care, education and national security.  So in order to finance this loss in tax revenue, we have two choices: 1) cut social spending or 2) increase the national debt. Link to Brookings Fact Sheet 

Making Tax Cuts Permanent would cost $2.5 trillion from 2005-2014
Making tax cuts permanent would cost $2.5 trillion from 2005-2014 and more than twice that amount from 2015-2024.  Link to PDF 

What happens if the tax cuts are made permanent?  (104k PDF)

Auerbach 2002 Bush Tax Cut  (145k PDF)
Promoters said that Tax Cut I that gave the wealthy more tax breaks in retirement plans would increase national savings.  But no… analysis shows that like most tax cuts this one in reality will increase spending and reduce national savings. PDF