Tax Breaks for the Wealthiest Americans

Photo Credit: Stan Dalone & Miran Rijavec

In addition to lobbying for tax breaks for big oil companies, the Kochs through Americans for Prosperity have consistently pushed to reduce taxes on the wealthiest Americans.

They have scored at least eight votes on reducing taxes for the wealthy, at least five votes opposing tax hikes on the wealthy, and at least four votes on repealing or reducing the estate tax.

What’s more, the Koch-endorsed Ryan budget plans would drastically reduce the top marginal tax rate and shift more of the tax burden to lower and middle-class families.

According to the Tax Policy Center, Ryan’s 2013 budget plan would give an average of over $1,200,000 back to the top 0.1% of earners, while adding an astonishing $5.7 trillion to our deficit over 10 years.

Over and over again, the Kochs and their political groups have worked to give more money back to corporations and the wealthy while taking money out of the pockets of working families.

AFP Scored At Least Eight Votes Reducing Taxes For The Wealthy As Key Votes. According to AFP’s congressional scorecards for the 111th and 112th Congresses, as well as the AFP Scorecard website, AFP took a position in favor of cutting taxes for the wealthy at least eight times. Six of those are the House and Senate votes on House Budget Committee chairman Paul Ryan’s FY 2012, FY 2013 and FY 2014 budgets – 2013 House vote 88, 2013 Senate vote 46, 2012 House vote 151, 2012 Senate vote 98, 2011 House vote 277 and 2011 Senate vote 87. The seventh was AFP’s backing of the FY 2012 Republican Study Committee budget – 2011 House vote 275 – while the eighth was AFP’s backing of Sen. Pat Toomey’s (R-PA) FY 2013 budget resolution: 2012 Senate vote 99. [AFP Scorecard for the 112th Congress, 2/1/13; AFP Scorecard for the 111th Congress, 1/10/11; AFP Scorecard website, viewed 5/2/14]

In At Least Five Votes, AFP Opposed Raising Taxes On The Wealthy. According to AFP’s congressional scorecards for the 111th and 112th Congresses, AFP took a position against raising taxes on high-income earners at least five times: 2012 Senate vote 184, 2012 Senate vote 251, 2010 Senate vote 258, 2010 Senate vote 259 and 2010 House vote 604. [AFP Scorecard for the 112th Congress, 2/1/13; AFP Scorecard for the 111th Congress, 1/10/11]

AFP Scored At Least Four Votes Repealing Or Reducing The Estate Tax As Key Votes. According to AFP’s congressional scorecards for the 111th and 112th Congresses, as well as the AFP Scorecard website, AFP took a position in favor of repealing or reducing the estate tax at least four times: 2013 Senate vote 67, 2010 Senate vote 213, 2009 House vote 929 and 2009 Senate vote 146. [AFP Scorecard for the 112th Congress, 2/1/13; AFP Scorecard for the 111th Congress, 1/10/11; AFP Scorecard website, viewed 5/2/14]

Ryan Budgets

2011: AFP Backed FY 2012 Ryan Budget, Which Consolidated Income Tax Brackets And Set A Top Marginal Rate Of 25 Percent. According to AFP’s congressional scorecard for the 112th Congress, AFP took a “yes” position on the House vote on House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2012 to 2021, which, according to the House Budget Committee, included a proposal to “consolidate tax brackets and lower tax rates, with a top rate of 25 percent.” The vote was 2011 House vote 277. [AFP Scorecard for the 112th Congress, 2/1/13; House Budget Committee,4/5/11]

  • FY 2012 Ryan Budget Would Have Made Permanent The 2001 And 2003 Bush Tax Cuts That Disproportionately Favored The Wealthy. According to the Center for Budget and Policy Priorities, “The House budget would permanently lock in all of the Bush tax cuts, which flow disproportionately to high-income people. It also would make permanent the relief from the AMT that now is regularly extended every year or two. The Congressional Budget Office estimates that extending these tax cuts would cost $3.8 trillion over the coming decade, the vast majority of which would be attributable to the Bush tax cuts. [3] The House budget essentially would finance these tax cuts with extremely large budget cuts, including cuts in a number of key programs for people with low or moderate incomes.” [Center on Budget and Policy Priorities, 5/26/11]
  • Ryan’s Proposal To Go Beyond The Bush Tax Cuts And Lower The Top Tax Rate To 25 Percent Would Have Primarily Benefited High-Income Earners; 95 Percent Of Americans Would Have Received No Benefit. According to the Center for Budget and Policy Priorities, “Reducing the top income tax rate to 25 percent would primarily benefit households with the highest incomes. For example, a family with two children and an income of $1 million (of which we assumed $850,000 comes from earnings) would receive an annual tax cut of $51,000 from lowering the top rate to 25 percent, which would be in addition to the $64,000 the family would get from extending all of the Bush tax cuts. And family with an income of $10 million (and $8.5 million in earnings) would receive a tax cut of $730,000 a year from the reduction in the top rate. In contrast, 95 percent of Americans would receive no benefit at all from lowering the top rate to 25 percent, because they would already be in the 25 percent tax bracket or a lower bracket (assuming that the Bush tax cuts were extended, as the House budget envisions).” [Center on Budget and Policy Priorities, 5/26/11]
  • Tax Policy Center’s Roberton Williams: Ryan Budget’s Tax Plan Would “Almost Certainly Shift More Of The Tax Burden To Low- And Middle-Income Families.” According to a blog post by the Tax Policy Center’s Roberton Williams on the TPC’s blog TaxVox, “The Tax Policy Center estimates that reducing the top tax rate to 25 percent would cut tax revenues by $2.9 trillion over the coming decade. Virtually all of the tax savings from that change would go to households making upwards of $200,000—the 5 percent of tax units who currently face marginal rates over 25 percent (including for the AMT). By itself, that tax cut would make the income tax decidedly less progressive than it is today. Chopping away at the thicket of tax expenditures would reclaim some or all of the revenue lost to the rate cut and raise taxes on affected households. Because the House leaves that process entirely to the Ways and Means Committee, we know nothing about which taxpayers would lose the benefit of those tax preferences. But unless all of the costs fall on the top 5 percent who benefit from the rate cut, any reduction in tax expenditures must raise taxes on low- and middle-income households. Taking away tax benefits for high-income households would claw back some of tax savings the rich would get from the lower top rate but wouldn’t erase those gains entirely. […] Following the House budget resolution would almost certainly shift more of the tax burden to low- and middle-income households and yield a less progressive tax system. Combining that with deep spending cuts doesn’t look like an equitable sharing of the costs of bringing the budget deficit under control.” [Williams post, TaxVox, 4/18/11]
  • Ryan’s Plan Would Provide A Tax Break To Millionaires Of $192,500 And A Tax Break To People Making $10 Million Of $1,450,650. According to Citizens For Tax Justice, “Taxpayers with income exceeding a million dollars would enjoy an average tax cut of at least $192,500 in 2013 if Congressman Paul Ryan’s budget plan was enacted. Taxpayers with income exceeding $10 million in 2013 would get an average tax cut of at least $1,450,650 under the Ryan plan.” [Citizens For Tax Justice, 5/26/11]

2012

AFP Backed FY 2012 Ryan Budget, Which Would Have Replaced The Current Income Tax Brackets With A Two Bracket-System: 10 And 25 Percent. According to AFP’s congressional scorecard for the 112th Congress, AFP took a “yes” position on the House vote on House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2013 to 2022, which, according to the House Budget Committee, included a proposal to “[c]onsolidate the current six individual income tax brackets into just two brackets of 10 and 25 Percent.” The vote was 2012 House vote 151. [AFP Scorecard for the 112th Congress, 2/1/13; House Budget Committee, 3/20/12]

  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Lower The After-Tax Income Of The Bottom 20 Percent Of Income Earners By 1.4 Percent. According to a Tax Policy Center estimate, the bottom quintile of income earners (by cash income percentile) would see their after-tax income decrease by 1.4 percent in 2015. [Tax Policy Center, 4/9/12]
  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Middle 20 Percent Of Income Earners By 1.6 Percent. According to a Tax Policy Center estimate, the middle quintile of income earners (by cash income percentile) would see their after-tax income increase by 1.6 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 4/9/12]
  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Top 1 Percent Of Income Earners By 11.7 Percent. According to a Tax Policy Center estimate, the top 1 percent of income earners (by cash income percentile) would see their after-tax income increase by 11.7 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 4/9/12]
  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Top Tenth Of A Percent Of Income Earners By 13.9 Percent. According to a Tax Policy Center estimate, the top tenth of a percent of income earners (by cash income percentile) would see their after-tax income increase by 13.9 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 4/9/12]
  • TPC Analysis Included Other Specified Tax Proposals In Ryan’s Budget, Including Lowering The Corporate Income Tax Rate To 25 Percent, Repealing The Alternative Minimum Tax, Repealing The ACA, And Not Renewing The 2009 Stimulus Law’s Tax Provisions. According to the Tax Policy Center, the examined “[p]roposal implements the tax provisions of the Fiscal Year 2013 House Republican Budget that have been specified including (a) repealing the individual alternative minimum tax; (b) enacting statutory tax rates on ordinary income of 10 and 25 percent; (c) repealing the health reform law; (d) reducing the top corporate tax rate to 25 percent; and (e) allowing the stimulus tax provisions from the American Recovery and Reinvestment Act of 2009 to expire. For the statutory rate changes, estimates assume that the IS percent rate would be reduced to 10 percent and that all rates above 25 percent would be reduced to 25 percent. Estimates do not include unspecified individual or corporate income tax base broadeners or the 20 percent qualified small business deduction.” [Tax Policy Center, 4/9/12]
  • Tax Policy Center: People Making Less Than $10,000 Per Year Would See Average Tax Increase Of $112.According to an analysis by the Tax Policy Center, the average taxes of those making less than $10,000 per year would increase by $112 under Ryan’s specified tax plan. [Tax Policy Center, 4/9/12]
  • Tax Policy Center: People Making More Than $1 Million Per Year Would Receive An Average Tax Cut Of $264,970. According to an analysis by the Tax Policy Center, the average tax cut for someone making more than $1,000,000 per year would be $264,970. [Tax Policy Center, 4/9/12]
  • The Tax Policy Center Determined Specified Tax Proposals In Ryan’s Budget Would Reduce Revenue By Almost $4.5 Trillion Over 10 Years, And By Nearly $10 Trillion When Including The Cost Of Continuing The Bush Tax Cuts. According to the Tax Policy Center, the tax cuts in Ryan’s budget would cost $4.461 trillion in revenues from 2013-2023. Over the same period an extension of all of the Bush tax cuts and the AMT fix would cost an additional $5.405 Trillion. [Tax Policy Center, 4/5/12]
  • Tax Policy Center Co-Director William Gale: Ryan’s Budget Was “Essentially, An Effort To Have Low- And Middle-Class Households Bear The Entire Burden Of Closing The Fiscal Gap And Bear The Costs Of Financing An Additional Tax Cut For High Income Households.” According to a blog post by William Gale, Co-Director of the Tax Policy Center, on the center’s TaxVox blog, “The budget proposal House Budget Committee Chairman Paul Ryan (R-WI) released last week is, essentially, an effort to have low- and middle-class households bear the entire burden of closing the fiscal gap and bear the costs of financing an additional tax cut for high income households.” [William Gale blog post, Tax Policy Center TaxVox blog, 3/27/12]

2013

2013: AFP Backed FY 2013 Ryan Budget, Which Consolidated The Individual Income Tax Brackets Down To Two, With One At 10 Percent And The Other At 25 Percent. According to AFP’s congressional scorecard website, AFP took a “yes” position on the House vote on House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2014 to 2023, which, according to the House Budget Committee, would have “[s]ubstantially lower[ed] tax rates for individuals, with a goal of achieving a top individual rate of 25 percent. […] [and] [c]onsolidate[d] the current seven individual-income-tax brackets into two brackets with a first bracket of 10 percent.” The vote was 2013 House vote 88. [AFP Scorecard website, viewed 5/7/14; House Budget Committee, 3/12/13]

  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Middle 20 Percent Of Income Earners By 1.9 Percent. According to a Tax Policy Center estimate, the middle quintile of income earners (by cash income percentile) would see their after-tax income increase by 1.9 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 3/15/13]
  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Top 1 Percent Of Income Earners By 17.4 Percent. According to a Tax Policy Center estimate, the top 1 percent of income earners (by cash income percentile) would see their after-tax income increase by 17.4 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 3/15/13]
  • The Tax Policy Center Estimated That Ryan’s Specific Tax Proposals Would Raise The After-Tax Income Of The Top Tenth Of A Percent Of Income Earners By 20.2 Percent. According to a Tax Policy Center estimate, the top tenth of a percent of income earners (by cash income percentile) would see their after-tax income increase by 20.2 percent in 2015 due to the examined tax proposals from the Ryan budget. [Tax Policy Center, 3/15/13]
  • Tax Policy Center Analysis Included Other Specified Tax Proposals In Ryan Budget, Including Lowering The Corporate Income Tax Rate To 25 Percent, Repealing The Alternative Minimum Tax, And Repealing The ACA’s High-Income Surtaxes And Medical Deduction Floor Increase. According to the Tax Policy Center, the examined “[p]roposal would eliminate the alternative minimum tax; reduce the 15 percent statutory rate to 10 percent; reduce all statutory rates over 25 percent to 25 percent (the resolution’s goal is a top rate of 25 percent); reduce the corporate tax rate to 25 percent; and repeal the taxes in the 2010 health reform law. For the latter, this table includes the effects of repealing: the 0.9 percent additional tax on earnings; the 3.8 percent additional tax on investment income; and the increase in the AGI floor to 10 percent for deductible medical expenses. It does not include repealing: the health insurer excise tax; the excise tax on high-premium insurance plans; employer penalties; and the premium assistance credit.” [Tax Policy Center, 3/15/13]
  • Tax Policy Center Estimates Of Ryan’s Budget Assumed That The 15 Percent Bracket Would Be Reduced To 10 Percent And The Brackets Above 25 Percent Would Be Reduced To 25 Percent. Tax Policy Center estimates of Ryan’s budget “assume that the 15 percent bracket would be reduced to 10 percent and that all brackets above 25 percent would be reduced to 25 percent.” [Tax Policy Center, 3/15/13]
  • The Tax Policy Center Determined That The Specified Tax Proposals They Analyzed Would Add $5.7 Trillion To The Deficit Over 10 Years. According to the Tax Policy Center, the total of all examined tax proposals in Ryan’s budget would reduce revenue by $5.741 trillion between 2014 and 2023. [Tax Policy Center, 3/15/13]
  • Ryan’s FY2014 Tax Reform Proposal Was Identical To His FY2013 Proposal, Which Would Have Cost The Government $4.5 Trillion In Revenue; The Same Proposal Cost More In 2013 Because Tax Rates On The Wealthy Had Increased In The Interim.According to Forbes, “When Ryan introduced his FY 2013 budget, it contained an identical vision for tax reform. And in response, the Tax Policy Center crunched the numbers and determined that reducing the rates to 10% and 25%, as Ryan proposes, would cost the government $4.5 trillion in tax revenue over a 10 year period. Keep in mind, this was when the maximum rate was 35%; now that the top rate has climbed to 39.6%, the forgone revenue would be greater.” [Forbes, 3/12/13]

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