The nonpartisan Joint Committee on Taxation (JCT) says the bill Republicans will vote on tomorrow to shield millions of Americans from President Obama’s fiscal cliff tax hikes is itself a $3.9 trillion tax cut.
Under current law, tax rates will go up on EVERYONE on January 1. President Obama and Democrats want higher taxes, and are fighting to punish small businesses in particular. The GOP bill permanently protects as many families and small businesses as possible from the tax hikes demanded by Democrats.
Courtesy the House Ways & Means Committee, here’s a look at how key provisions of the GOP bill result in $3.9 trillion in permanent tax relief for families and small businesses:
- $1.9 trillion: Permanently stopping the Alternative Minimum Tax (AMT) from hitting more middle class families;
- $875.7 billion: Permanent extension of current income tax rates for everyone making less than $1 million;
- $388.2 billion: Permanent death tax relief;
- $282.5 billion: Permanent extension of capital gains and dividend tax rates for everyone with less than $1 million in income;
- $220.1 billion: Permanent extension of $1,000 child tax credit;
- $162.7 billion: Permanent repeal of personal exemption phase-out (PEP) and Pease limitation;
- $59.5 billion: Permanent marriage penalty relief;
- $28.8 billion: Permanent extension of education and other family tax relief; and
- $45.7 billion: Permanent extension of section 179 expensing for small businesses.
The House has not only voted to replace the defense ‘sequester’ and stop all of the tax hikes scheduled for January 1 -- Republicans have also outlined several balanced, bipartisan plans to avoid the “fiscal cliff.” Each of them would make needed spending cuts and reforms – including many supported by the president in the past – and could pass both the House and the Senate.
But the White House is still slow-walking us to the edge of the cliff, rejecting the GOP’s balanced plans and demanding ones that focus more on punishing small business owners than cutting spending.
The threat of current tax rates expiring and hurting every taxpayer is too great to not take action. That’s why, as Speaker Boehner said today, the House will vote to "make permanent tax relief for nearly every American." Read more here.