Tax Cuts: Wealthy to Benefit Most From Obama – GOP Tax Deal

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A new analysis shows that the wealthiest Americans will receive the most benefit from President Obama’s controversial fiscal deal with Republicans. This week, Obama agreed to extend the Bush-era tax cut for the wealthiest Americans and reduce the estate tax in return for a 13-month extension of jobless benefits and a handful of tax credits for low and moderate-income Americans. According to the New York Times, at least a quarter of the tax savings under the deal will go to the wealthiest one percent of the population. The plan’s $900 billion cost will be added to the federal deficit, not made up through spending cuts or the closing of loopholes that have taxed capital gains and dividends at just fifteen percent. By contrast, the only group that will see its taxes increase are the nation’s lowest-paid workers. Individuals who make less than $20,000 dollars and families with earnings below $40,000 stand to see tax hike because Obama agreed to eliminate his Making Work Pay credit, which provided up to $400 for individuals and $800 for families of low and moderate income. Speaking at the White House, Obama rejected Democratic criticism of the plan, saying he was forced to compromise.

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