The Republican 'Plan B'

[ProblemAgain]

what a surprise......(insert sarcasm font here)

'Plan B' Would Actually Raise Taxes on the Poor

By Robert Frank | CNBC – 2 hours 7 minutes ago

@cnbc on Twitter

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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. (Read more: How Much Would Taxing the Rich Raise?)

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.

(Read more: The Five Largest Landowners in America)

Yet Plan B also eliminates many of the Obama-led tax credits that largely benefit low-income earners, including the 2009 enhancements to the child tax credit, the earned income tax credit and others. Repealing these credits hurts families with children the hardest, according the Tax Policy Center.

This is not to say that Plan B is good or bad. But its true impact on taxes is broader than many in the House would lead us to believe.

[ellevan]

I just heard that Plan B has been pulled because of "lack of support."

[ProblemAgain]

i find myself amazed at their gall...refusing to commit to meaningful changes for gun control....trying once again to screw the middle and lower classes on taxes...and telling us how they are for america...it is like a rapist sending you flowers to show they care

[LoveLife&Laughter]

[exedir]

What we are is but one more step closer to the abyss.  And no, the stock market is not taking this as a good economic sign.  

Congress in the meantime has gone home and couldn't be back until the middle of next week to do business.  And in the meantime we will still have the comings and goings of what is yet still to happen covered by the 24/7 media.  The next item is the Sunday news programs where doom and gloom will probably be the point of the talking heads, pundits and media experts on what will happen next, and what is next is the New Year's surprise or the Mayan calendar was just wrong by a week or so.

[Ioruach]

Pulled by Boehner because some Repubs on the far right balked at allowing taxes to rise even on incomes more than $1 million a year.  ONE MILLION!!!  I can not believe those people.

[exedir]

So, we are on to "Plan C" which seems to be, let Harry Reid and the senate do it.  Of course, the president is in Hawaii and the congress is gone until at least Wednesday so, if it is going to happen, it will be with a chorus of "Auld Lang Syne" still ringing and maybe the ball in Times Square, dropping, dropping from it's pole, or not.

The chances of the cliff being a Thelma and Louise moment is getting to be a better bet as the Republicans and Democrats embrace as one in a grip of making the other side share the blame and be warned to not drive angry as we witness another Ground Hog Day experience and wake up on January 1 with Sonny and Cher singing in Phil Conners radio.

[LoveLife&Laughter]

Right...it's the President who refused to compromise.

Those on the Left believe he threw their baby out with the bath water trying to compromise, but still that wasn't enough for Republicans.  They obviously want everything their way -- or no way --  let the country go into another recession.

By the way, didn't Republicans already do that in 2008; once isn't enough for you guys?