“Plan B” would supposedly raise taxes on people making over a million, but the increase would inevitably trickle down to the poor as well, claims Yahoo Finance.
Initially meant to equate the playing field in the tax scenario to make those with the most money pay their share, it only tilts said playing field.
The non-partisan Tax Policy Center found that the average taxpayer earning $1 million or more in cash income would see their taxes go up by an average of $72,000. A small percentage of those millionaires will see a tax cut, due to an anomaly in the Alternative Minimum Tax.
People earning between $10,000 to $20,000 will see their taxes go higher by an average of $262. People making $20,000 to $30,000 will pay additionally up to $219.
Now that doesn’t sound right. Earning more money gives you a slight break?
But that’s not the scariest part, says CNBC.
One in five Americans tax payers earning less than $20,000 a year will see an income tax increase of $1,070.
Americans earning between $200,000 and $1 million would actually see a tax cut. This might work for small businesses, but low income earners would feel the burn.
The reason is that “Plan B” has two parts. The first part adds higher taxes to the rich, but also cuts tax deductions to the poor. This can only mean that everybody is doing their part to eliminate the national debt.
President Obama did say in 2008 that change would mean things will get worse before they get better, and “Plan B” could very well be the embodiment of that statement.