GOP Budget a New Windfall for the Wealthy

After brushing off last week's Republican "road to recovery" blueprint as a "marketing document," Rep. Paul Ryan unveiled the GOP's alternative budget in a Wall Street Journal op-ed. In it, Ryan offers the same snake oil his party has been selling since the days of Reagan and Bush. The cure for what ails the U.S. economy, it turns out, is a massive tax windfall for the wealthiest Americans who need it least.

The new Republican budget doubles down on the wildly regressive Bush/McCain tax cutting binge American voters rejected at the polls in November. Making the budget-busting Bush tax cuts of 2001 and 2003 permanent, the GOP also proposes an alternative "highly simplified system that fits on a post card, with few deductions and two rates." Taxpayers making over $100,000 would see their rate drop to 25% from its current high of 35%. (Below that level, the rate drops to 10%.) Corporate taxes would also drop to 25%. While the capital gains tax rate would be frozen at its post-2003 level of 15%, the estate tax would be eliminated altogether.

The predictable result is yet another massive redistribution of the tax burden away from the richest Americans even as it produced a torrent of red ink. While the Center for American Progress concluded the Boehner-Ryan giveaway would hand an annual tax bonanza of $1.5 million to the average CEO, a preliminary analysis from the Center for Tax Justice last week concluded that by 2011, the GOP scheme would drain the Treasury to the tune of $300 billion more than the Obama plan. And as is par for the course for the Republicans, the usual upper-income suspects benefit the most:



Over a fourth of taxpayers, mostly low-income families, would pay more in taxes under the House GOP plan than they would under the President's plan.

The richest one percent of taxpayers would pay $100,000 less, on average, under the House GOP plan than they would under the President's plan.