There are responsible tax cuts—and then there are tax giveaways for the already really rich.
In discussions over extending the Bush tax cuts, Republicans propose massive tax giveaways for the wealthy while the middle- and lower-income families would pay slightly more, according to a new analysis by Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy (ITEP).
The analysis compares the tax plans proposed by President Obama and congressional Republicans.
The richest 1 percent would get an average tax cut of $20,130.
The richest 1 percent would receive an average cut of $70,790.
The poorest 20 percent of Americans would receive an average tax cut of $270.
The poorest 20 percent of Americans would receive an average tax cut of $120.
U.S. taxpayers also would foot a bigger bill under the Republican plan—to the tune of $1 trillion over 10 years.
The public agrees with Obama’s approach. Only 26 percent surveyed want to see the Bush tax cuts continue, according to a United Technologies/National Journal Congressional Connection Poll out this week. The Bush tax cuts, passed in 2001 and 2003 and extended several times, expire at the end of 2012.
Forty-seven percent of respondents say they want to see the tax cuts extended only for those earning less than $250,000. The opposition to extending the Bush-era tax breaks for those earning above $250,000 spanned every ethnic and age group in the poll, with young voters most opposed.
In 2009, Obama expanded parts of the tax cuts that benefit low-income and working families. In December 2010, the president and Congress agreed to extend all of these tax cuts through the end of 2012.
Congress is not expected to vote on a tax plan until after the November elections.