off the charts
POLICY INSIGHT
BEYOND THE NUMBERS
BEYOND THE NUMBERS
Claims About Economic Downside of Ending High-End Tax Cuts Don’t Hold Up
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House Ways and Means Republicans and others have cited a report — sponsored by various business interests and produced by the accounting firm Ernst & Young — claiming that letting the high-income Bush tax cuts expire would shrink employment by 0.5 percent over ten years, which the report says translates to 710,000 jobs “in today’s economy.” Analysis by the non-partisan Congressional Budget Office (CBO), however, strongly suggests that this claim is highly implausible. Here’s why: