The New York Democrat also told reporters on Wednesday that, while BoehnerJohn BoehnerLobbying World 'Ready for Michelle' PACs urge 2020 run News Flash: Trump was never going to lock Clinton up MORE’s plan to allow tax rates to rise on income over $1 million was bad policy, the silver lining was that it showed congressional Republicans were willing to back a rate above the current top 35 percent.
Schumer, joined by Sen. Tom HarkinTom HarkinGrassley challenger no stranger to defying odds Clinton ally stands between Sanders and chairmanship dream Do candidates care about our health or just how much it costs? MORE (D-Iowa), noted that many millionaires would still see a tax cut under Plan B, because the proposal does not reinstate rules meant to limit how much the highest taxpayers can write off.
In its most recent offer, the White House moved to reinstate those rules – so-called PEP (Personal Exemption Phase-out) and Pease – for those making more than $250,000 a year, and have said the GOP proposal amounts to a $50,000 tax cut for the wealthy.
Harkin and Schumer also blasted Republicans for proposing to allow expansions of three separate tax breaks – the Earned Income Tax Credit (EITC), the American Opportunity Tax Credit and the child tax credit – to expire. All three tax credits were expanded in the 2009 stimulus package.
“What Boehner is proposing is strictly a hit on the lower rungs of the middle class,” Harkin said.
The American Opportunity Tax Credit, meant to make college more affordable, has a 100 percent credit for the first $2,000 of tuition.
The stimulus increased the amount of income eligible for the child tax credit, and expanded the EITC for families with more than three children. The EITC is aimed at lower-income working people and families.
Republicans have said that the stimulus expansions of those credits were meant to be temporary, and should expire.