Scorekeepers in Washington such as the Joint Committee on Taxation (JCT) and the Congressional Budget Office can often make or break the outlook for different policy ideas. This week, the JCT released its revenue estimate of S. 2059, legislation by Senator Sheldon Whitehouse (D-RI) that would implement the President’s proposed “Buffett Rule.”
As a reminder, the Buffett Rule would require anyone with income in excess of $1 million to pay an effective tax rate of no less than 30%. The 10-year revenue estimate for S. 2059 came in at $46.7 billion, or just under $5 billion per year. The meager revenue estimate (relative to a yearly deficit of $1.2 trillion) came as a surprise to many in Washington and will not help the proposal’s prospects of becoming law.