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Competing tax plans produce different results for low- and middle-income residents

Posted By Allan Freyer On June 20, 2012 @ 3:10 pm In NC Budget and Tax Center | Comments Disabled

As the January 2013 expiration-date of the Bush tax cuts nears, policy makers in Washington are debating two different approaches that would provide dramatically divergent benefits for North Carolina’s middle and low-income residents, according to a newly released report from Citizens for Tax Justice [1] (click on North Carolina to see the state-specific fact sheet). The first plan, proposed by President Obama, would cut taxes by $250 for North Carolina’s poorest 20% of residents and $930 for residents with incomes in the middle 20%.  The second plan, on the other hand, is supported by Congressional Republicans, and provides the overwhelming amount of benefits to the wealthiest 1% of North Carolina’s residents, who would a receive an average tax cut of $48,540 next year.  Under this plan, the poorest 20% would receive a tax cut of just $70 next year, and the middle 20% would receive just $850.

For more details on each plan, including specific tax changes and their impact on the Federal budget deficit, read the full report [2].

 


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URL to article: http://pulse.ncpolicywatch.org/2012/06/20/competing-tax-plans-produce-different-results-for-low-and-middle-income-residents/

URLs in this post:

[1] report from Citizens for Tax Justice: http://www.ctj.org/bushtaxcuts2012.php

[2] full report: http://ctj.org/ctjreports/2012/06/the_bush_tax_cuts_obamas_approach_vs_congressional_gops_approach_state-by-state.php

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