OMB Watch – Federal Budget – Weblog
The House of Representatives has declined to limit the massive tax cuts on millionaires. The cuts for millionaires average $120,000 per person; a defeated proposal would have cut that to $24,000.
Daily Report for Executives – House Kills Democratic Plan to Hike Taxes
The GOP-controlled House voted mostly along party lines June 24 to defeat a Democratic-drafted resolution revising the fiscal year 2005 budget resolution (S. Con. Res. 95) by raising taxes $19 billion on those making more than $1 million a year and funneling the funds to deficit reduction and domestic programs.
Democrats said their plan would ask the richest taxpayers to give up part of their tax cut for one year at a time of war and record deficits when more of the tight federal dollars are directed into defense and homeland security accounts, leaving priorities such as education and health care to feel the budget squeeze.
Specifically, the resolution offered by House Appropriations Committee ranking member David Obey (D-Wis.) would limit the tax cuts of those with adjustable gross incomes of at least $1 million a year in 2005 to $24,000 instead of what Obey said is the $120,000 tax break they would get under current law. Obey said even a lower $24,000 tax cut for the rich would be 24 times larger than the tax relief for those earning $50,000 a year.
“That’s hardly an outrageous sacrifice,” Obey said.
Reducing the tax cut for wealthier taxpayers would produce $18.9 billion in 2005, of which $4.7 billion would go to deficit reduction with the rest directed to eight priority areas such as health care, veterans’ benefits, education, and increased homeland security efforts.