House Republicans plan to vote tonight on their so-called “Plan B,” which would void the tax increases and spending cuts scheduled for the end of the year. Instead, the GOP’s two measures would cut spending from a series of consistent GOP punching bags — food stamps, Obamacare, and Wall Street reform among them — and then extend the Bush tax cuts on income up to $1 million.
However, Plan B would allow the lapse of several key tax credits — including expansions of the Earned Income Tax Credit and the Child Tax Credit — meaning that it would raise taxes on millions of low-income and middle-class families. The Tax Policy Center found that nearly one-quarter of Americans in the lowest income quintile would see their taxes go up by an average of $934.
But don’t tell House Budget Committee Chairman Paul Ryan (R-WI) — fresh off his failed Vice Presidential bid — who claimed on the House floor that “there’s not a single tax increase that we’re proposing here”:
With respect to taxes, heh, what we are trying to do here is limit the damage to the taxpayer. There’s not a single tax increase that we’re proposing here, not a single. What we’re saying is, prevent as many tax increases as possible from hitting anybody in this economy.
As CNBC’s Robert Frank wrote, “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 addition to raising taxes on the middle-class, Boehner’s Plan B would preserve a slew of tax breaks for the wealthy.