Comparing Democratic and Repubican Tax Plans



Representative Charles B. Rangel

Representing the 15th Congressional District of New York

FACT SHEET: Side-By-Side Comparison Of House Democratic And GOP Tax Plans

Today, the House will take up H.R. 8., the Republican Tax Plan, as well as a Democratic substitute. The following side-by-side demonstrates the differences of the two approaches.

Also linked here is a letter from 132 organizations, from the Alliance of Retired Americans to the YWCA, opposing the Republican plan, along with a letter from small businesses and millionaires.

Democrats: Tax Cuts for Certainty and Fairness for Everyone
GOP: Holds Middle Class & Small Business Hostage for the Richest 2%


Democratic Plan (H.R. 15)

Republican Plan (H.R. 8)

Extend 2001 & 2003 Tax Cuts for the Middle Class

Yes. Yes.

Extend 2001/2003 Tax Cuts on Income Above $250,000

No. All taxpayers continue to get tax cuts on the first $250,000 in income Yes.More tax breaks for the richest 2 percent, providing $160,000 for the average millionaire — on top of the $1 million that they received over the last 9 years


YES. Continues current law on the American Opportunity Tax Credit for college, Child Tax Credit, and the Earned Income Tax Credit No. Raises taxes on 25 million families by $1,000 on average, by allowing the credit for college to end, as well as the expansion of the Child Tax Credit and the EITC

Small Business Expensing

MORE. Provides $297 million more than the GOP plan in small business tax relief — allowing small businesses to write off more of their investments in capital equipment – up to $250,000 for purchases of new equipment of up to $800,000 LESS.Reduces the amount that small businesses can write off for capital equipment – down to $127,000 for purchases of new equipment of up to $510,000 


DOWN. Ending tax cuts for the richest 2% reduces the deficit by $930 billion over 10 years UP. Increases the deficit by $50 billion in one year for more tax cuts for the richest 2%

Estate Tax

FISCALLY RESPONSIBLE. H.R. 16 ensures 99.7% of estates will not face any estate tax liability — returning to the 2009 estate tax levels, with a $7 million exemption (per couple) and 45 percent rate MORE FOR A FEW.Provides more tax breaks averaging $2.4 million for the wealthiest 3,600 estates — extending current law for one year, with a $10 million exemption (per couple) and 35 percent rate

Alternative minimum tax

1 Year extension 2 Year extension

Capital Gains & Dividends

Extends current 15% rate for those making up to $250,000; returns to 20% for those making over $250,000 Extends current special 15% rate for taxpayers, including those making over $250,000



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