We call on Congress and President Obama to let the Bush-era top bracket tax cuts for those with taxable incomes over $200,000 (individual) and $250,000 (couple) expire no later than December 31, 2012, as now scheduled, without another extension. The increased revenue, nearly $1 trillion over ten years, should go toward making long overdue investments in job creation, education, health, renewable energy, transportation, and other infrastructure.
As part of the “fiscal cliff” negotiations late last year, most of the Bush-era top-bracket tax cuts were extended. The tax cuts did expire for individuals making more than $400,000, and families with earnings of $450,000 or more. All in all, the fiscal cliff deal is projected to bring in $617 billion in revenue over the next decade. Most of that amount will come from households making $1 million or more.
This is a small step in the right direction; however, it will yield considerably less revenue than would have been gained by raising rates on those making $250,000 or more. In addition, the deal also makes 82 percent of the Bush-era tax cuts - about $2.77 trillion - permanent.