As a member of the Americans for Tax Fairness Coalition, and as an organization that fights for a working family agenda, we want to be crystal clear about Speaker Boehner’s proposed “Plan B.”
It’s bad. But let’s expand on that.
It’s bad for all workers who need jobs, families that are trying to pay for college, parents who are living paycheck to paycheck to raise children, and low-income Americans who already dangling off the cliff of poverty.
But it is good for some people, and you won’t be surprised who they are: the top 2% of wage-earners who have enjoyed tax breaks they don’t need, families with enormous estates who want to avoid inheritance taxes, and Tea Party conservatives who blindly oppose taxes, regardless of their country’s needs.
“Working families – including our 500,000 members in Pennsylvania –want Speaker Boehner to ask the richest 2 percent of Americans to pay their fair share of taxes. Boehner’s proposal does not raise taxes on the richest 2 percent, does not raise enough revenue to reduce the deficit and rebuild the economy, and it would raise taxes by an average of $1,000 on 25 million working families with children and students,” said Kim McMurray, Pennsylvania State Director of Working America.
Here is what Boehner’s Plan B would do and would not do:
- Raise taxes on the richest three tenths of one percent (0.3%), rather than raise taxes on the richest 2 percent – the latter is what the American people voted for in the last election and support by overwhelming numbers in public opinion polls.
- Raise $1 trillion less from wealthy Americans than Obama’s last tax plan offer. This additional revenue is essential to prevent a gutting of critical programs that benefit working families and to make new investments to rebuild the economy. Boehner’s plan would raise $300 billion, according to White House estimates, whereas Obama’s last offer was to raise $1.3 trillion from the richest 2 percent.
- Raise taxes on 25 million low- and middle-income Americans by an average of $1,000 each. According to White House estimates, Plan B does this by ending improvements made in tax credits and incentives passed in 2010 to the American Opportunity Tax Credit, which helps pay for college; the Child Tax Credit, which helps working families offset the costs of raising children; and the Earned Income Tax Credit, which encourages low-income working families.
- Continue an estate tax giveaway that loses $120 billion over 10 years, compared with the Obama plan, and affects just 2 out of every 1,000 estates. Obama’s estate tax plan would affect just 3 out of every 1,000 estates.