GOP Set To Pass $69 Billion More In Tax Cuts For The Rich...

NY Times May 11, 2006 at 09:07 AM
READ MORE: George W. Bush

A puzzling aspect of Congress's latest tax-cut package is why its overwhelmingly Republican supporters believe that its passage will be a big win for them and their party. There's nothing in it for most Americans, and yet all Americans will pay its cost: $69 billion over the near term. That price tag will be reflected in incessant budget deficits, which will further impair the government's ability to meet Americans' needs, and force the government to borrow more, mostly from abroad, to plug the budget gap.

The bill, which was passed yesterday by the House and is expected to clear the Senate as early as today, has two main provisions. The first, and dearest to the hearts of President Bush and his allies in Congress, is an extension of the temporary low tax rates on investment income. The top 10 percent of income earners will get almost all of the benefits, and everyone else will get crumbs.

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