President Obama’s fiscal year 2015 budget proposes to increase taxes on individuals by over $820 billion and on businesses by about $500 billion, for a total of over $1.3 trillion in new taxes over the next ten years....
- The Tax Policy Blog
- Tax Foundation Comments on Proposed Stimulus Deal
Tax Foundation Comments on Proposed Stimulus Deal
Based on the reported agreement between House Speaker Pelosi and House Minority Leader Boehner, it is apparent that fiscal stimulus may not be provided as the much touted tax rebates, but instead as simple cash payments to most working Americans. The cash payments would be set at $600 for individuals, $1200 for married couples who pay income taxes. Workers with at least $3,000 in earnings, but who pay no income taxes, would receive $300. There would be an additional payment of $300 per child added to the base. Estimates suggest the cash payments would total $100 billion.
Tax Foundation Vice President for Economic Policy Robert Carroll responded:
"While direct cash payments may help boost consumer spending and shore up the economy in the near term, this relief would do virtually nothing to improve the prospects of working Americans or the economy as a whole over the long haul. Short-term fixes only serve as short-term solutions. In addition to addressing the current economic weakness, the Congress also needs to take notice of how far the U.S. business tax system has fallen behind in today's global economy. The U.S. now has the second highest corporate tax rate among major economies. Taking action on this pressing issue would improve America's competitiveness, strengthen our economy, and protect American jobs facing pressure from foreign competition."
Buy this blogger a cup of coffee!
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.