You guessed it, households making between $100,000 and $1 million dollars a year. From the Center for Budget and Policy Priorities:
RECONCILIATION TAX CUTS WOULD AVERAGE $42,000 FOR HOUSEHOLDS WITH INCOME OVER $1 MILLION, BUT ONLY $20 FOR MIDDLE-INCOME HOUSEHOLDS
By Joel FriedmanHouse and Senate negotiators have reportedly reached final agreement on the $70 billion tax-cut reconciliation package. Although no official description of the agreement has been released, press reports on the contents of the final package indicate that it will offer virtually no benefits to low- and moderate-income households, but shower high-income households with very large tax cuts.
The Urban Institute-Brookings Institution Tax Policy Center has examined the major provisions that are expected to be in the package, including a two-year extension of capital gains and dividend tax cuts, a one-year extension of relief from the Alternative Minimum Tax, and a proposal to lift the income limits that apply to converting retirement funds to Roth IRAs. Preliminary estimates by the Tax Policy Center show that: [1]
About 87 percent of the benefits of the reconciliation conference agreement would flow to the 14 percent of households with incomes above $100,000, and 55 percent of the benefits would go to the 3 percent with incomes above $200,000. Households earning more than $1 million a year, which represent only 0.2 percent of all households, would receive 22 percent of the benefits of these tax cuts. — Read More
I get warm and fuzzies every time I think of that extra tax break we’re giving to the highest income earners in Rhode Island, on top of these new national tax breaks. But hey, pretty much everyone will benefit, right? The Chafees, the Whitehouses, the Laffeys, and the Kennedys. Party on, Garth!
Don’t get me started and the real culprits of largese are the large corporations. I could tell you the legal loop holes they pay an army of Big 4 accounting firms to apply and some questionable methods, too that have shifted the burden to work income.
Wealth income is an issue that is sorely in need of dialogue and I have had several past posts on that at my site.
Not surprisingly, 12th District writes about a similar tax issue. Here’s my reply.
Nationally and within Rhode Island there is a disproportionate concentration of wealth by a very, very small percenatge.
The tax cuts for the wealthy reappear as higher property taxes at te local level, because there’s nothing our towns and cities can really do about it (occasional sales tax hikes).
Since social services and education is what good government does best and tax cuts are purported to stimulate the economy – the tax cuts ought to be applied to the widest population – middle class – who will more likely stimulate their local economies from purchases.
The wealthy can be given tax credits for making education contributions to public schooling K – college to offset their rolled back taxes applied to wealth income from 2001.
It’s workable and it’s fair.