July 20,2012

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Revised Analysis Comparing Differences Between Plans to Extend Tax Cuts

MEMORANDUM

To:        Reporters and Editors
From:    The Communications Office of Senate Finance Committee Chairman Max Baucus (D-Mont.)
Re:        Revised Analysis Comparing Difference Between Plans to Extend Tax Cuts

An analysis by the Joint Committee on Taxation comparing the Democrats’ Middle Class Tax Cut Extension Act to a Republican proposal to extend all the 2001, 2003 tax cuts shows the Republican proposal costs dramatically more than the Democrats’ bill.   The Republican proposal — which extends tax cuts for the wealthiest Americans — will add $155 billion more to the nation’s deficit than the Democrats’ plan. 

While cutting taxes for the wealthiest Americans, the Republican proposal also raises taxes on millions of middle-class families. Unlike the Democrats’ proposal, the Republican plan fails to extend the 2009 tax cuts for middle-class families that are set to expire at the end of this year.  

 

                            Cost/10 in Millions $
 

Republican Plan

Democratic Plan

Middle Class 01/03 Cuts
High-income 01/03 Cuts
Middle class 09 Cuts               179 expensing ($250K)
179 expensing ($500K)
2012 AMT patch
2013 AMT patch
2012 estate tax

Total

$129,530
$49,095
N/A
N/A
$2,352
$92,039
$100,695
$31,207

$404,918

$129,530
N/A
$27,216
$878
N/A
$92,039
N/A
N/A

$249,663
     

Senate Finance Committee Chairman Max Baucus (D-Mont.) released the following statement today comparing the Senate proposals.  From Chairman Baucus:

“When you cut through all the spin and do an honest, side-by-side comparison, there is no question that the Reid plan is more fiscally responsible and does a better job of protecting the middle-class. The Reid plan targets tax relief for American workers, providing them the certainty they need during these tough economic times.”