ANALYSIS: Republican ‘Jobs Plan’ Spends $10 Trillion On Ineffective Tax Cuts For The Rich And Corporations
"ANALYSIS: Republican ‘Jobs Plan’ Spends $10 Trillion On Ineffective Tax Cuts For The Rich And Corporations"
Back in December, when Rep. Eric Cantor (R-VA) was asked to explain the Republican’s “big idea” when it came to job creation, all he could muster was “the big idea is to get, to get, to produce an environment where we can have job creation again. And see, that’s where the Obama administration’s agenda so clearly disadvantages the Democrats in this upcoming election in eleven months and advantages us.”
In fact, Republicans have been having an internal debate about whether they should even try to lay out a policy agenda. But last night, Rep. Tom Price (R-GA), chairman of the House Republican Study Committee (RSC), said that the GOP is prepared to produce “positive solution after positive solution,” particularly when it comes to jobs and the federal deficit. Watch it:
CNBC’s supply-side guru Larry Kudlow was impressed with Price’s declaration, saying “sometimes some good old ideas can be the best new ideas.” And indeed, Price’s Republican Study Committee is chock full of old ideas.
In fact, according to a new analysis by the Center for American Progress Action Fund and Citizens for Tax Justice (written by myself, CAPAF Associate Director for Tax and Budget Policy Michael Linden, and crack CAPAF intern Ethan Berman), the RSC-supported “jobs plan” is actually a huge doubling down on the Bush agenda of budget-busting tax cuts for the wealthy and corporations that won’t effectively create jobs. Here are some highlights:
– The plan, titled the Economic Freedom Act of 2010, would add nearly $7 trillion in deficits over the next ten years. Coupled with their plan to renew all of the Bush tax cuts of 2001 and 2003, the GOP’s proposal costs a whopping $10 trillion.
— Their two solutions for paying for this spending spree — repealing TARP and the remaining stimulus funds — covers less than five percent of the total cost.
— The tax benefits of the plan overwhelmingly go to the very rich. In 2012, 61.5 percent of the tax benefits would go to the richest one percent of households.
— Under the plan, the average middle-class taxpayer receives a tax cut of $467. The average taxpayer in the richest one percent (with an average income of $1.4 million) receives a tax cut of $157,500.
The GOP jobs plan also includes a huge corporate tax cut, which will be examined in more depth later. Not only are these tax cuts incredibly expensive, they also provide little “bang for the buck” in terms of job creation, according to both the Congressional Budget Office and Moody’s Economy.com.
Read the full report, “Republicans’ $10 Trillion Giveaway,” here.