"SOTU: Making Bush’s Tax Cuts Permanent Would Be Costly"
Bush said: “Because America needs more than a temporary expansion, we need more than temporary tax relief. I urge the Congress to act responsibly, and make the tax cuts permanent.”
FACT — TAX CUTS WILL COST $3.4 TRILLION OVER TEN YEARS: The cost of making the tax cuts permanent will be $3.4 trillion through fiscal year 2015. This includes the cost of extending the Alternative Minimum Tax relief associated with these tax cuts. [Congressional Budget Office, 1/26/06]
FACT — PERMANENT TAX CUTS OVERWHELMINGLY FAVOR THE WEALTHIEST: If Bush’s tax cuts are made permanent, the top one percent of households will gain an average of $71,420 a year when the tax cuts are fully in effect. By contrast, people in the middle of the income spectrum would secure average tax cuts of just $870. [Urban Institute-Brookings Institution Tax Policy Center, 12/20/05]