William Alden Huffington Post posted 04/18/11
NEW YORK — Today, as Americans submit their tax returns, the wealthiest earners will each reap hundreds of thousands of dollars in tax savings.
As part of a law passed late last year, the Bush-era tax cuts for the richest Americans were extended for two years. The estimated cost to the government of that portion of the tax deal, $42 billion this fiscal year, exceeds the stated $38 billion value of the savings from the federal budget cuts lawmakers approved last week.
Those budget cuts, which will affect many services for poor Americans, add more strain to a still weak economy, leading some economists to lament that this allocation of federal resources is not the most efficient way to promote economic growth.
“I don’t think it’s a good time to be trimming federal outlays if you’re interested in the vulnerability of the economy,” said economist Gary Burtless, formerly with the Labor Department and now at the Brookings Institution. “I’m not quite sure where the theories come from that this is going