Find yourself in the tax cut plans

The difference between the Obama plan for tax cuts and the Republican plan is significant for individuals in Virginia. Both plans give tax cuts to everyone across the board at all income levels. Although both plans give everyone a cut, under the Republican plan 80% of people in Virginia would pay more in 2011 than they would under the Obama plan. Here are the differences, ranked by income groups of 20% of Virginians:

  • The lowest 20% with an average income of $11,990.00 a year would pay $117.00 more under the Republican plan.
  • The second 20% with an average income of $28,000.00 would pay $108.00 more under the Republican plan.
  • The third 20% with an average income of $48,000.00 would pay $41.00 more under the Republican plan.
  • The fourth 20% with on average income of $79,000.00 would pay $2.00 more under the Republican plan.

The top 20% of Virginians is here broken up into smaller segments:

  • The first 15% (75% of this group) with an average income of $139,818.00 would pay $14.00 less under the Republican plan.
  • The next 4% with an average income of $290,212.00 would pay $538.00 less under the Republican plan.
  • The top 1% with an average income of $1,313,424.00 would pay $44,000.00 less under the Republican plan.

Under the Obama plan, the largest single percentage segment of the tax cuts is 31% and goes to people in the lowest 75% of the top income group, those with an average income of $139,818.00. Under the Obama plan, these folks would on average receive a tax cut of $$3,795.00. Under the Republican plan, they would receive an average tax cut of $3,809.00, producing the difference shown above of $14.00 less under the Republican plan.

Under the Republican plan, the largest single percentage segment of the tax cuts is 30.5% and goes to the top 1% shown in the list above, with incomes over a million dollars a year. Under the Obama plan, these folks would on average receive a tax cut of $23,903.00. Under the Republican plan, they would receive an average tax cut of $68,811.00.

Under both plans the rich stay rich and the poor stay poor. Under the Obama plan, 61% of the tax cuts go to people in the top 20% of income leaving 39% to be shared by the bottom 80% of Virginians. Under the Republican plan, 70.6% of the tax cuts go to those same people, leaving 29.4% for the bottom 80%.

The Obama plan is the better one, because it has the largest percentages clustered in the middle income categories where it will help struggling small business owners and working people. These larger percentages include the 31% noted above to the lower segment of the top 20% and the second largest segment, 18.4%, going to the group with an average income of of $79,708.

These figures are from Citizens for Tax Justice . Additional information, including national and state-by-state figures, are available in .pdf format for download from this link.

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