In case you missed it, Veronique de Rugy’s chart from last week is a must-see (and must-share):
This chart uses two measures of the revenue impact from taxing the rich (blue bars): the FY2013 amount and the 10-year average tax collection. The business and energy tax extenders (red bar) alone take away $67.7 billion from federal revenue in 2013.
Taxes collected from increasing rates on the rich in FY2013 amount to $27 billion, while tax revenue collected based on the average over 10 years is roughly $62 billion. Even in the best-case scenario for tax collection, the increases in revenue are lower than the amount being paid out to businesses and energy subsidies.
If President Obama had let all of the special tax breaks for businesses and energy companies expire, he would have raised more revenue than his tax hikes on high-income earners. The president’s actions contradict his professed desire to ensure that “the wealthiest corporation and individuals can’t take advantage of loopholes and deductions that aren’t available to most Americans.”
Privileges for some, punishment for others
Here is the chart:
(click on the image to see large)
Read the whole post here.
Also, don’t miss Vero’s latest blog post. It addresses a newly-discovered provision in the fiscal cliff deal. The provision reduces Medicare payments for one and only one firm, a company that happens to directly compete with another firm that figures prominently in the Senator Majority leader’s state.