Senate Votes to End Tax Breaks for Rich
July 25, 2012
The Senate on Wednesday voted 51 to 48 to extend tax cuts for most working Americans and end Bush-era tax breaks in 2013 for individuals making more than $200,000 a year and couples earning at least $250,000. "With a $16 trillion national debt and a $1 trillion deficit, we cannot continue to give tax breaks to millionaires and billionaires," Sen. Bernie Sanders said after the vote. "This is a step forward in ending the Bush-era tax breaks for the rich and asking the wealthiest Americans, who are doing phenomenally well, to do their fair share to bring down deficits. I hope our Republican friends in the House can overcome their support for tax breaks for the wealthy and support this common-sense approach to cutting deficits."
The proposal tax cuts that the Senate are worth $1,600 to the average family.
The bill also extends other tax provisions critical to the middle class - the American Opportunity Tax Credit, the expanded Child Tax Credit and Earned Income Tax Credit - that help families afford college, cover their bills and provide for their children.
The American Opportunity Tax Credit helps middle-class families afford college by covering up to $2,500 of the cost of tuition.
The Child Tax Credit provides hard-working families with $1,000 worth of tax relief for each child under age 17.
The Earned Income Tax Credit is a refundable credit that offers assistance to working individuals and families who earned less than $49,078 in 2011.