According to Congressional Budget Office (CBO) data, extending the tax cuts on top earners would create a budget shortfall of $700 billion over ten years. That’s $70 billion a year. Meanwhile, extending the tax cuts on the middle class would create a budget shortfall of $3,000 billion over ten years.
Now, thinking like a government official, this means that extending the tax cuts would “cost” the government $3.7 trillion over ten years. This sounds like a lot of money, but let’s put it in perspective and look at how much the federal government will be spending over the course of the next ten years.