Nevada taxpayers and the Bush Tax Cuts

Blog by, Laura Martin lmartin@planevada.org

06/20/2012

Middle-income and low-income Nevadans would pay somewhat more in taxes under the Congressional Republicans’ approach to extending the Bush tax cuts than they would under President Obama’s approach, while high-income Nevadans would pay far less under the Republican approach, according to a new analysis from the Institute on Taxation and Economic Policy (ITEP) and Citizens for Tax Justice (CTJ).  National figures show the same pattern.

Under President Obama’s approach, in 2013, the poorest 20 percent of Nevadans would receive an average tax cut of $430 while the richest one percent would get an average tax cut of $19,360.  Under the Congressional Republicans’ approach, the poorest 20 percent of Nevadans would receive an average tax cut of $220 while the richest one percent would receive an average cut of $101,400.

The study also finds that in 2013: Of tax cuts that go to Nevadans under Obama’s approach, 5.2 percent   would go to the poorest 20 percent, 12.4 percent would go to the middle 20 percent and 11.9 percent would go to the richest 1 percent; under the Republican plan, 1.8 percent of the cuts would go to the poorest 20 percent of Nevadans 7.6 percent would go to the middle 20 percent and 42.4 percent would go to the richest one percent.

The Bush tax cuts extension outlined by the President would cost one trillion dollars less over 10 years than would making all the Bush tax cuts permanent.

The full report is available at www.ctj.org/bushtaxcuts2012.php and shows the specific distribution of the benefits, and amounts of tax cuts, from the two different approaches in each of the fifty states and the District of Columbia as well as nationally.