‘Plan B’ Would Actually Raise Taxes on the Poor

(Before It's News)

One of the touted benefits of “Plan B” is that it only raises taxes for those making $1 million or more. As Eric Cantor said this morning, the plan would raise revenue “without hurting many small businesses” or taxpayers.

But a closer look at the tax impacts of Plan B shows that while it raises taxes on most million-plus earners, it also raises takes for many low-income earners.
The non-partisan Tax Policy Center found that the average taxpayer earning $1 million or more in cash income would see their taxes go up by an average of $72,000. A small number of those million-plus earners will see a tax cut, due to an anomaly in the Alternative Minimum Tax.

But lower income earners will also see a tax hike. People making between $10,000 to $20,000 will see their taxes go up by an average of $262. People making $20,000 to $30,000 will see their taxes go up by $219.

Granted, those are minor increases. But drilling down deeper, you find that some of those low-income earners could see a sizable increase. One in five of Americans who earn less than $20,000 a year will see an increase of $1,070 — a sizeable amount for low-income earners.

In fact, the only taxpayers who will get an overall tax cut under Plan B are those who earn between $200,000 and $1 million. People making between $200,000 and $500,000 will see an average tax cut of $301. Those making between $500,000 and $1 million will see their taxes go down by $164.

The reason is that Plan B has two parts – raising taxes on high earners and eliminating deductions for low earners. The plan raises the tax rate for those making $1 million or more to 39.6 percent from its current rate of 35 percent. It would also raise the capital gains and dividend tax rates for those earners to 20 percent from 15 percent.

http://finance.yahoo.com/news/plan-b-act…48865.html

Shows who’s butt the GOP kisses…

• Queen Elizabeth II Attends Cabinet Meeting For First Time
• Strongest winds in years closes U.S. 441 through Smokies
• UN authorizes military intervention in Mali
• Russia Doomsday Party At Soviet Bunker Costs $1,000 Per Person
• Somalia Boat Capsizes, 55 Somalis, Ethiopians Dead Or Missing
• How Washington Is Likely to Slice Social Security Benefits
• Russia acknowledges that Syrian leader may fall
• Boehner won’t commit to gun-control votes
• Mayan doomsday fears prompts Michigan schools to close
• 5.0+ Earthquakes on 12/20/2012