Note: Ryan’s proposal as released Tuesday calls for a tax cut that would reduce the top bracket from 39.6% to 25% (see update below).
The so-called “fiscal cliff” law passed by the Congress and signed by the President in January restored the top income tax rate to the Clinton-era levels of 39.6 percent, and increased the capital gains tax rate from 15 percent to 20 percent. It also made the Bush Tax Cuts For The Rich permanent for all other tax brackets. Reps. Paul Ryan and Jason Chaffetz voted against it. Now Rep. Chaffetz is touting the new Ryan budget proposal – which includes $600 billion in revenue from the measure they opposed in January.
Ryan Lizza put Chaffetz on the spot this morning on CNN, pointing out that “Republicans voted overwhelmingly against a deal that raised $600 billion in revenue, and now it sounds like they’re going to put out a budget that pockets that $600 billion…”
That’s not the only policy reversal in Ryan’s proposal:
The budget [proposal] will also likely include Medicare savings from the Affordable Care Act and “adjustments for an expected decline in war spending, a move that could reduce assumed expenditures by up to $600 billion over the next decade.” Ryan has consistently derided war savings as “phantom savings” and promised to restore the Medicare cuts during his vice presidential bid.
UPDATE: The Ryan proposal released on Tuesday includes a giant tax cut for the rich (14.6 percent for the top bracket), paid for by raising taxes on the middle class and cutting the social safety net.