US Treasury says extending tax cuts would cost blns

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-06T234900Z_01_N0612084_RTRIDST_0_BUSH-BUDGET-REVENUES.XML

WASHINGTON, Feb 6 (Reuters) - Key White House tax proposals would cost the U.S. government tens of billions of dollars in lost revenue, the Treasury Department said on Monday, although the administration says they will help boost revenues in the long run.

Making permanent expiring tax breaks for dividends and capital gains, which expire at the end of 2008, would cost the government $7.74 billion in 2008 and $37.02 billion in 2009, Treasury said in its "Blue Book" description of revenue proposals in President George W. Bush's fiscal 2007 budget.

Making dividend and capital gains tax breaks permanent is a central Bush administration goal in 2006, but critics say the administration will be hard-pressed to both keep the tax breaks and achieve its other priority, cutting the federal budget deficit starting in fiscal 2007.

<snip>

Although Treasury shows the tax cut extensions as losing revenue, administration officials say increased investment from extending the breaks will lead to greater investment and economic growth, and in the end, more returns to government coffers.

...more...

(edited because I really didn't mean to hit "post" yet)

note: I know whenever I take a cut in pay, it really boosts my income :sarcasm:

[MrSlayer]

1. Well it's all part of the plan.

Starve the beast.

[EC]

2. Okay, if they are cutting capital gains and giving breaks for dividends

how in the world does increased investment add to the tax coffers since they don't pay taxes on investments with his cuts?

[Nutmegger]

3. Tax cuts in a time of war???

Ohhh...I forgot.

[xxqqqzme]

4. "...Although Treasury shows the tax cut

extensions as losing revenue, administration officials say increased investment from extending the breaks will lead to greater investment and economic growth, and in the end, more returns to government coffers....'

Damn it takes a long time 2 get there.

If it loses revenue, the it's a sure rhing 2 pass in both houses!