What’s truly wrong with the Ryan Budget


Paul RyanBy , The Washington Post

The tax plan embedded in the House Republican budget would cut taxes by $5.7 trillion over the next decade, with the benefits flowing disproportionately to very wealthy households, according to a new analysis by the nonpartisan Tax Policy Center.

Taxpayers earning more than $1 million a year would benefit the most from the GOP tax plan, the analysis shows, reaping an average $400,000 tax break that would send their after-tax income soaring by nearly 20 percent.

Meanwhile, taxpayers earning between $40,000 and $50,000 a year — closer to the national average — would see their taxes cut by about $666 on average, increasing their after-tax income by less than 2 percent.

The analysis by the Tax Policy Center, a project of the Brookings Institution and the Urban Institute, focuses solely on one part of the tax plan spelled out in the GOP budget: a proposal to collapse the rate structure, which tops out at 39.6 percent, into two brackets, 25 percent and 10 percent.

The budget, drafted by House Budget Committee chairman Paul Ryan (R-Wis.), proposes to make up the revenue lost to those changes through an overhaul of the tax code that would eliminate existing tax breaks and deductions.

But the budget leaves those details to the House Ways and Means Committee, and the Tax Policy Center did not attempt to predict the effect of those changes.

Read more…

 

Additional Reading:

Analysis: GOP fiscal vision prioritizes enormous tax cuts for rich over deficit

 

_______________________________________

Follow on Facebook, Twitter and Pinterest

Advertisements

2 Comments to “What’s truly wrong with the Ryan Budget”

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: