Tax Plan’s Biggest Cuts Could Be in Living Standards

A decade ago or so, the nonpartisan Tax Policy Center and the liberal-leaning Center on Budget and Policy Priorities estimated that making the Bush tax cuts permanent — rather than letting them expire in 2010 — would increase the after-tax income of people earning $1 million or more up to 7 percent, an order of magnitude more than it would increase the size of the economy in the long term. The bottom 80 percent of American families, by contrast, would actually be worse off because they would bear the brunt of paying for the cuts.