Deficits would decrease if tax cuts for wealthiest expire, report says

Extending the tax cuts for the top 2 percent of taxpayers would increase deficits and debt by $826 billion over 10 years, according to the report. 

Some on Capitol Hill have toyed with continuing relief on the upper brackets to protect small business owners from incurring a tax increase next yea but the CBPP argues that few businesses would benefit from the extension. 

Exempting small business income from the scheduled increase in the top tax rates, as some may propose, would do little for the economy in the short term," the report said.

That change would benefit only the top 3 percent of people with business income. 

"Over the long term, such an exemption would likely harm the economy and the budget by encouraging tax avoidance and reducing revenues.," the report said. 

To read the full report, click here. 

Jay Heflin contributed to this story.