Now that there's a whole two months in which to talk about the payroll tax cut and unemployment insurance extension, and because the House Republicans have been substantially weakened by the fight, maybe a better idea than the payroll tax cut can get some traction. It's an idea, in fact, that we've already tried.


CTJ chart
A new report from CTJ shows that the Bush tax cuts supported by Senator Kyl will provide $231 billion in benefits to the richest fifth of taxpayers in 2012 and just $3 billion to the poorest fifth of taxpayers during that same year. [...]

The CTJ report points out that a better option would be to revive the Making Work Pay Credit that expired at the end of last year, which has been discussed by some Senators but ignored by leaders of both parties.

The report finds that if the Making Work Pay Credit was in effect in 2012, the richest fifth of taxpayers would receive $11 billion while the poorest fifth of taxpayers would receive $7 billion, making it a less costly and more targeted tax cut.


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