It is easy for a politician to say, “I am going to cut taxes,” but it is rare for a politician to tell us who is going to pay for tax cuts. As many people are aware, $1.8 trillion in tax cuts were passed by Congress in 2001 and 2003, primarily to benefit the very rich.
A lesser known fact is these tax cuts have been slowly phased in to make it easy for politicians to avoid answering the tough questions about who is going to pay for them. So far, about 80 percent of the tax cuts have been realized, and the full effect of tax cuts will be felt in 2010.
We got a glimpse of who is paying when Congress voted to cut $40 billion from vital health care and education programs in the wee hours of Dec. 19. Instead of citing the recent tax cuts as the reason for these devastating program cuts, or admitting they did not have time to read the 774-page bill before they cast their vote, the Republican majority told us sacrifices need to be made for the victims of Hurricane Katrina. This is a puzzling rationale when you consider that a day later, the Senate approved $27 billion in tax cuts for the richest people in the country.
Continue reading Federal tax cuts leave state’s at-risk residents with less