Just so we're clear, and this bears repeating even if it is obvious, the richest people in the country are going to, once again, be the gift of more welfare-for-the-rich under the tax proposals of House Budget Committee Chairman Paul Ryan--while, just by the numbers, lower income people will get hit with a tax increase. Don't you love this system?
Here are the facts from the Citizens for Tax Justice:
For taxpayers with income exceeding $1 million, the benefit of Ryan’s tax rate reductions and other proposed tax cuts would far exceed the loss of any tax expenditures. In fact, under Ryan’s plan taxpayers with income exceeding $1 million in 2015 would receive an average net tax decrease of over $200,000 that year even if they had to give up all of their tax expenditures. These taxpayers would see an even larger net tax decrease if Congress failed to limit or eliminate enough tax expenditures to offset the costs of the proposed tax cuts.
Estimates produced using the Institute on Taxation and Economic Policy (ITEP) microsimulation tax model illustrate two scenarios for how the Ryan budget plan could be implemented. In the first scenario, very high-income people must give up all of their tax expenditures, except for those subsidizing investment and savings which Ryan has consistently made clear he would preserve. Even in this scenario, these very wealthy people would receive enormous net tax cuts, as illustrated in the table above. In the second scenario, these very high-income people are not required to give up any tax expenditures, and as a result their net tax cuts would be even larger.
Because these very high-income taxpayers would pay less than they do today in either scenario, the average net impact of Ryan’s plan on some taxpayers at lower income levels would necessarily be a tax increase in order to fulfill Ryan’s goal of collecting the same amount of revenue as expected under current law.[emphasis added]
Facts.