According to a new report from Citizens for Tax Justice, the Republican approach to the Bush tax cuts — which is simply to extend all of them into perpetuity — would, of course, involve the rich paying lower taxes than President Obama’s plan, which is to allow the cuts to expire for the richest two percent of Americans. However, under the Republican approach, low-income Americans would also pay more than they would under Obama’s plan, because of expansions of the Earned Income Tax Credit and Child Tax Credit that the GOP would not extend.
Here’s the breakdown of how much each income group would receive in tax cuts under the respective plans. The GOP plan would give millionaires an additional $50,000 annually, while taxing the lowest-income Americans $150 more than Obama’s plan:
Under the GOP plan, nearly one-third of the total benefit goes to the richest 1 percent, while just 11 percent of the benefit of Obama’s plan does:
Of course, both of these plans entail spending huge amounts of money to extend tax cuts that didn’t deliver on their economic promise. But under the GOP plan, an even larger percentage of that money would be dumped straight into the hands of those at the top of the income scale.