That was the question that rang out for months from policy makers, journalists, and concerned onlookers everywhere. And in the first few days of January, the American Taxpayer Relief Act was signed into law, resolving several of the tax and budget issues known as the “fiscal cliff.” Among other things, it requires the very wealthiest to pay a fairer share of taxes, extends tax credits that benefit hardworking families for five years, extends unemployment insurance benefits for a year, and delays across-the-board spending cuts for two months.
However, another series of fiscal showdowns are looming. Read more »
You may have heard that House Speaker John Boehner (R-OH) has introduced a tax bill that is now being referred to as "Plan B" — that is, a backup plan of sorts if the negotiations with President Obama to resolve the "fiscal cliff" break down. The House is scheduled to vote on it tomorrow. But Plan B is a bad deal for women and their families. Here are the top five reasons why:
Plan B raises taxes for 25 million low- and moderate-income families. By ending important improvements to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), and eliminating the American Opportunity Tax Credit (AOTC) for college expenses, Plan B takes tax benefits away from the families who need them most. NWLC has calculated that ending the improvements to the EITC and CTC would take $12.6 billion in tax credits from hardworking families — and women would bear two-thirds of those losses.
Plan B lets millionaires off easy. By keeping in place all of the Bush-era tax cuts on incomes up to $1 million and repealing tax expenditure limits for even the very highest earners, Plan B ensures that households with incomes over $1 million — the top 0.3 percent — still get tax cuts averaging $50,000 per year (compared with President Obama's proposal to end the Bush-era tax cuts on income above $200,000 for an individual or $250,000 for a couple).