Many of you have talked about the recently passed tax compromise. Some of my liberal friends hated it, as did some of my conservative friends. Others supported it.
I figured now that it’s gone to the President for his signature, I’d break down in graphical form, the budgetary effects of the bill. The Atlanta Journal Constitution did a good job of putting things in layman’s terms, I linked to that earlier. JCT’s technical explanation is here, and estimated budget effects are located here.
A quick, and I do mean quick, primer.
- Not each of the blue lines in the charts are the same.
- Some represent foregone revenue, meaning rates were scheduled to go up to X from Y, and that line represents the amount of revenue we “lose” by keeping taxes at Y, not X.
- Some represent spending, in the form actual direct spending (like unemployment insurance) while others represent tax credits that let people keep more of their own money, or in the case of some refundable tax credits — other peoples’ money.
(Click to expand)
You can print a poster of the big chart, by downloading my Budget Impact Poster.