Middle class families are facing an increase in their taxes in January, and House Republicans are the only ones standing in the way of preventing that from happening. Last week, the Senate passed a bill stopping the tax hike on middle class families and businesses, which Democrats introduced in the House today. While Republicans are playing political games that put middle class Americans at risk, the House could take action immediately to extend rates on income up to $250,000 while asking our nation’s wealthiest to pay a fair share towards our fiscal challenges by passing the Senate bill. It is time for Republicans to stop holding 98% of Americans hostage to providing tax breaks to the top 2% in our country.
Here’s a comparison of plans by House Democrats and Republicans:
Under Democrats’ plan to extend middle class tax cuts and ask the wealthy to pay their fair share:
- The 98% of Americans making up to $250,000 would see no tax increase, and 100% of Americans would have their taxes cut on income up to that amount.
- Democrats’ proposal would ensure that 97% of small businesses would see no increase at all in their taxes.
- Allowing tax cuts to expire for the 2% of wealthiest Americans would reduce the deficit by $930 billion over 10 years. [Congressional Research Service]
Under Republican’s plan to protect the wealthiest 2%:
- The average millionaire would receive a $160,000 tax cut in 2013 under the Republican plan compared to $2,200 for the typical middle-income family of four.
- Eliminating the American Opportunity Tax Credit would cause 11 million families and students paying for college to see a tax increase averaging $1,100.
- Reduction in the amount of credit available to low- and moderate-income working families through the Child Tax Credit would affect 12 million working families, including 5 million that would no longer be eligible for the credit at all.
- Nearly 6 million working families with incomes below $50,000 would see tax increases averaging $500 apiece because Republicans would eliminate the increase in Earned Income Tax Credit for larger families and reduce the credit for many married couples.