Earlier today ThinkProgress reported that the House Ways and Means Committee is expected to approve a proposal by House Majority Leader Eric Cantor (R-VA) that is misleadingly entitled the Small Business Tax Cut Act.
The Tax Policy Center has now estimated who benefits from Cantor’s bill. Among TPC’sfindings:
– The top 1 percent would receive an average tax cut that is 1000 times bigger than the average tax cut for people in the middle quintile ($23 vs. $23,000). The top 0.1 percent would receive an average tax cut of more than $130,000.
– Half of the tax benefits would go to millionaires, who comprise less than one-half of one percent of all taxpayers and only 4 percent of actual small business owners according to a recent Treasury study. Millionaires, on average, would get a tax cut of $45,000 — almost as much as median household income in 2010.
– Business owners with annual income of $200,000 or less — who comprise more than 75 percent of small business owners — would receive only 16 percent of the benefit from Cantor’s bill.
The Cantor bill would cost $46 billion and is not paid for. More debt-financed tax cuts for the rich: haven’t we tried that before?