Removing Tax Cuts Would Reduce the Deficit  Maintaining Bush tax cuts would cost the government $680 billion in revenue over the next ten years according to Paul Krugman.  Given the downgrade in the U.S. credit rating by some credit agencies, it seems prudent to choose to roll back at least some of these cuts in order to please those agencies and convince them that the U.S. is taking serious action to tackle its debt. If this is the case, then they are likely to upgrade or maintain the U.S. credit rating. This is beneficial for the U.S. as it means that in the future it has smaller repayments to make on its current debt and can more readily take on debt in the future.  Further, given that the rich spend a smaller percentage of their money than the poor on consumption, an increase in taxes for the rich will firstly not cause a significant downturn in consumption and secondly, if spent responsibly by the government, will lead to further growth in the future which might cause the government to be able to recoup the money that it spends through higher tax revenue from a growing economy in the future. [1]  [1] Krugman, Paul “Now That’s Rich.” New York Times. 22/08/2010