President Barack Obama’s 2014 budget proposal will raise taxes on the middle class despite claims to not increase taxes on individuals making less than $200,000 a year, reports the Hill:
The non-partisan Tax Policy Center on Monday said the poor making less than $10,000 a year will face an average $18 more in taxes in 2015. That those making as little as $30,000 a year will face $61 more year in 2015 and $54 a year in 2023 under the Obama proposals released April 10. […]
“His proposed increase in the tobacco tax would disproportionately affect low- and moderate-income taxpayers, who spend a bigger share of their income on cigarettes than the wealthy. However, middle-income households would benefit from two other tax changes: a more generous child and dependent care tax credit, and Obama’s proposal to extend those relatively generous rules for the earned income credit, child tax credit, and education credit,” the Tax Policy Center’s Howard Gleckman wrote in a blog post.
The Tax Policy Center found that individuals making $1 million a year will see taxes increase by $83,000 in 2015 and $96,000 more in 2023. Additionally, middle class taxpayers making between $100,000 and $200,000 will face a 0.2 percent tax increase in ten years.