WASHINGTON, D.C. -- Americans for Tax Fairness, a campaign with more than 230 national, state, and local organizations united in support of a tax system that works for all Americans, released a statement today on U.S. House Speaker John Boehner's "Plan B," which is scheduled for a vote on Thursday.
"Speaker's Boehner's Plan B stands for bogus. It fails three tests - It does not raise taxes on the richest 2 percent, it does not come close to raising enough revenue to reduce the deficit and rebuild the economy, and it would raise taxes by an average of $1,000 on 25 million working families with children and students," said Frank Clemente, campaign manager of Americans for Tax Fairness.
"Plan B is nothing more than a political ploy. It's time for the Speaker to stop playing political games and accept President's Obama tax plan that would raise $1.3 trillion by asking the richest 2 percent of Americans to pay their fair share."
Analysis of what Boehner's Plan B would do and would not do:
· Raise taxes on the richest three tenths of one percent (0.3%), rather than raise taxes on the richest 2 percent - the latter is what the American people voted for in the last election and support by overwhelming numbers in public opinion polls.
· Raise $1 trillion less from wealthy Americans than Obama's last tax plan offer. This additional revenue is essential for serious deficit reduction, to prevent a gutting of critical programs that benefit the middle class, and to make new investments to rebuild the economy. Boehner's plan would raise $300 billion, according to White House estimates, whereas Obama's last offer was to raise $1.3 trillion from the richest 2 percent.
· Raise taxes on 25 million low- and middle-income Americans by an average of $1,000 each. According to White House estimates, Plan B does this by ending improvements made in tax credits and incentives passed in 2010 to the American Opportunity Tax Credit, which helps pay for college; the Child Tax Credit, which helps working families offset the costs of raising children; and the Earned Income Tax Credit, which encourages and rewards low-income families that work.
· Continue an estate tax giveaway that loses $120 billion over 10 years, compared with the Obama plan, and affects just 2 out of every 1,000 estates. Obama's estate tax plan would affect just 3 out of every 1,000 estates.