Revenue shortfall for the Federal government – 2011 budget

According to the Tax Policy Center (50 page PDF report and tables at the link), the 2011 proposed budget has a a ten year deficit $3.8 trillion larger than stated by the Obama administration ($4.9 vs. 1.1 trillion). Anyone still believing only the rich will be taxed are lacking any critical cognitive function. Who is the Tax Policy Center?

The Tax Policy Center is a joint venture of the Urban Institute and Brookings Institution. The Center is made up of nationally recognized experts in tax, budget, and social policy who have served at the highest levels of government.

Let the critics try and paint these as right wing nut jobs.

The one paragraph that hits home.

The [Administrations] budget assumes a baseline in which the 2001-2003 tax cuts are permanent (including the estate tax at its 2009 level), the exemption in the alternative minimum tax (AMT) is permanently indexed for inflation from its 2009 level, and that temporary expansions of refundability of the child tax credit and of the earned income credit are permanent. Those provisions would reduce revenues by $3.8 trillion over the 2010-2020 period. TPC’s analysis measures the impact of the tax proposals not against the administration baseline but rather against a current law baseline that assumes the 2001-2003 tax cuts expire as scheduled in 2011 and that the AMT exemption maintains its permanent level. Against that baseline, the administration’s tax proposals would cause much greater revenue losses than official budget estimates show.

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