GOP Plan B lowers taxes on certain wealthy households
Only those who earn between $200,000 and $1 million would see their federal tax burden shrink under the GOP's 'Plan B' proposal, according to analysis from the nonpartisan Tax Policy Center.
While extending Bush-era tax cuts on income up to $1 million is the centerpiece of House Speaker John Boehner's proposal to avert part of a year-end fiscal crisis, earners at nearly all levels will see their tax burden rise, albeit only slightly for most, according to a distributonal table posted online.
Those earning more than $1 million will pay $72,360 more on average than they do today, but due to a combination of other included tax changes, others would be hit as well. Poor wage earners would see an increased tax burden due, in part, to the loss of tax cuts enacted under Obama's 2009 stimulus, said Tax Policy Center senior fellow Roberton Williams. After millionaires, those earning between $10,000 and $20,000 a year would see the next-highest average increase in their tax burden at $262.
Only two groups would see a lightened tax load. Those who earn between $200,000 and $500,000 a year would pay an average of $301 less under the Plan B proposal than they do right now. And earners who make between $500,000 and $1 million would pay $164 less.
The GOP is expected to vote on the proposal today.