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

EXTEND TAX CUTS FOR STUDENTS AND WORKING FAMILIES

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

Deficit

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

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