NEW YORK --As part of a law passed late last year, the Bush-era tax cuts for the richest Americans were extended for two years. The estimated cost to the government of that portion of the tax deal, $42 billion this fiscal year, exceeds the stated $38 billion value of the savings from the federal budget cuts lawmakers approved last week.
But the extension of the tax breaks for the wealthy have proven more controversial, especially as job-creation has remained slow.
Under the extension, a family that earns between $500,000 and $1 million gets an average $25,000 tax break, according to the Tax Policy Center. A household earning more than $1 million gets more than $130,000.
During the next two years, tax cuts for the wealthy will cost the government about $120 billion and will create or save about 290,000 jobs, according to analysis by the White House-aligned research group Center for American Progress.
That's a cost of about $400,000 per job . . .
Click on the headline to see the complete article at the Huffington Post.
Rightardia has talked about this before and this article proves that tax cuts for the affluent are inefficient. Moody's analytics Mark Zandi had said as much. He was the author of the chart that follows:
It is clear programs like food stamps, infrastructure spending and extending unemployment insurance provide more bang for the federal bucks. These are all classic Democratic approaches to a sluggish economy.
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