Levin: GOP Plan a Tax Cut for Wealthy, Tax Hike on Middle Class

The following press release was published by the U.S. Congress Committee on Ways and Means on Nov. 21, 2011. It is reproduced in full below.

WASHINGTON - Ways and Means Ranking Member Sander Levin (D-MI) today made the following statement regarding the Joint Select Committee on Deficit Reduction:

“Contrary to what Republicans have sought to portray, the proposal by Sen. Toomey would have further lowered taxes on the very wealthy and increased taxes for a wide range of middle class families. Their plan to lower the top tax rate while not touching the two provisions that most narrowly help the highest earners - reduced rates for capital gains and dividends - virtually ensures the proposal would mean a massive tax cut for the highest earners. They would pay for it by significantly limiting tax provisions - such as the health care exclusion, education credit and mortgage interest deduction - whose benefits flow predominantly to middle income taxpayers. This is exactly the wrong approach. We should now be asking the very highest earners - not middle income taxpayers - to contribute more to deficit reduction through the tax code."

BACKGROUND:

The following Joint Committee on Taxation analysis provides a detailed distributional breakdown of many of the largest tax expenditures:

* Employer provided health benefits and deduction for self-employed health (2011 rates and incomes)

** Below $100,000: 46%

** $100,000-$200,000: 35%

** $200,000 and above: 19%

* Mortgage interest deduction

** Below $100,000: 31%

** $100,000-$200,000: 39%

** $200,000 and above: 30%

* State and local income, sales and personal property tax deductions

** Below $100,000: 19%

** $100,000-$200,000: 31%

** $200,000 and above: 50%

* Charitable contributions deduction

** Below $100,000: 19%

** $100,000-$200,000: 26%

** $200,000 and above: 55%

* Earned income credit

** Below $100,000: 100%

** $100,000-$200,000: 0%

** $200,000 and above: 0%

* Child tax credit

** Below $100,000: 90%

** $100,000-$200,000: 10%

** $200,000 and below: 0%

* Education Credits

** Below $100,000: 81%

** $100,000-$200,000: 19%

** $200,000 and above: 0%

* Long-term capital gains (2011 rates and incomes)

** Below $100,000: 5%

** $100,000-$200,000: 7%

** $200,000-$500,000: 9%

** $500,000-$1 million: 8%

** $1million-plus: 71%

* Qualified Dividends (2011 rates and incomes)

** Below $100,000: 17%

** $100,000-$200,000: 18%

** $200,000-$500,000: 13%

** $500,000-$1 million: 10%

** $1million-plus: 41%

Source: U.S. Congress Committee on Ways and Means