One of the touted benefits of “Plan B” is that it only raises taxes for those making $1 million or more. As Eric Cantor said this morning, the plan would raise revenue “without hurting many small businesses” or taxpayers.
But a closer look at the tax impacts of Plan B shows that while it raises taxes on most million-plus earners, it also raises takes for many low-income earners.
According to the Tax Policy Center, the tax code adjustments contained in Speaker Boehner’s ‘Plan B’ proposal would only bestow a tax cut on those making between $200,000 and $500,000 annually. Worse, approximately 20 percent of those making $20,000 or less will see their taxes increase by $1,070 - an increase of at least five percent for each taxpayer.