Non-partisan study: Boehner's 'Plan B' cuts millionaire taxes
The latest Republican offer to resolve the U.S. "fiscal cliff" standoff keeps tax rates low for households making less than $1 million a year, but millionaires get the benefit of lower taxes too, according to a non-partisan study released on Wednesday.
The analysis by the Tax Policy Center found that Republican House Speaker John Boehner's so-called Plan B provides an average tax cut of about $108,000 for households making more than $1 million, when compared to the rates this group would face if the country went over the cliff.
Taxpayers earning between $50,000 and $75,000 a year get an average tax cut of about $1,400, according to the analysis.
The reason is that tax rates are imposed on a marginal basis. A taxpayer making $1.1 million, for example, would only pay the higher rate on $100,000 of their income, enjoying the same break as lower earners on income below the million-dollar level.
http://www.reuters.com/article/2012/12/20/usa-fiscal-millionaires-idUSL1E8NJLJN20121220