High-income Connecticut residents would pay $125,380 less in taxes under the Congressional Republicans’ approach to extending the Bush tax cuts than they would under President Obama’s approach, while middle-income and low-income Connecticut residents would pay somewhat more in taxes under the Congressional approach, according to a new analysis from the Institute on Taxation and Economic Policy (ITEP) and Citizens for Tax Justice (CTJ). National figures show the same pattern.
“As Connecticut families struggle to support their children in this difficult economy, we can’t afford a massive giveaway to the wealthiest residents,” said Wade Gibson, Senior Policy Fellow at Connecticut Voices for Children. “The Congressional tax cut proposal reflects the wrong priorities for families in the state.”
Among the findings:
- Under the Congressional Republicans’ approach, in 2013, the richest one percent would receive an average cut of $152,680, compared to a cut of $27,300 under President Obama’s approach – a $125,380 difference.
- Of tax cuts that go to Connecticut residents under the Republican plan, 45.8% percent of the cuts would go to the richest one percent, compared to 13.4% under Obama’s approach.
The Bush tax cuts extension outlined by the President would cost one trillion dollars less over 10 years than would making all the Bush tax cuts permanent.
“Both President Obama and Congressional Republicans have proposed to extend far too many of these unaffordable tax cuts,” said Robert S. McIntyre, director of Citizens for Tax Justice. “But if we have to choose between the Congressional Republicans’ and President Obama’s approach, however, the President’s proposal is fairer and more responsible.”
Also see CT Voices news release about the report.