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Plan B = A Permanent $3.9 Trillion Tax Cut for Families and Small Businesses

March 31, 2015 — The Tax Tracker   

According to the Joint Committee on Taxation, Speaker Boehner’s alternative to the still-in-progress fiscal cliff negotiations with President Obama would permanently extend the 2001/2003 tax cuts for incomes up to $1 million and provide a total tax cut of $3.9 trillion over the next 10 years. 

Provision Total budget effects (2013-2022), per JCT table  Outlay effects (2013-2022), from footnote 1 of JCT table Tax cut (2013-2022)
[Total budget effects minus outlay effects]

Permanent extension of reduced marginal income tax rates for incomes up to $1M $912.6 billion
$36.9 billion $875.7 billion
Permanent repeal of PEP and Pease limitation $162.7 billion N/A $162.7 billion
Permanent $1,000 child credit $354.5 billion $134.4 billion $220.1 billion
Permanent marriage penalty relief $84.6 billion $25.1 billion $59.5 billion
Permanent extension of other 2001 tax cuts (e.g., education benefits, adoption credit) $30.8 billion $2.0 billion $28.8 billion
Permanent extension of reduced capital gains/dividends rates (top rate of 15%) for incomes up to $1M
$282.5 billion N/A $282.5 billion
Permanent extension of 2012 estate tax rules ($5 million exemption/35% top rate) $388.2 billion N/A $388.2 billion
Permanent extension of higher small business expensing limits under Sec. 179 $45.7 billion N/A $45.7 billion
Permanent AMT patch (including interaction effects between the AMT patch and the 2001/2003 tax cuts) $1.9 trillion N/A $1.9 trillion
TOTAL $4.1 trillion $198.3 billion $3.9 trillion


SUBCOMMITTEE: Work and Welfare    SUBCOMMITTEE: Full Committee