As the Senate begins to debate its budget resolution for fiscal year 2011, one issue that will be debated fiercely is what exactly should be done about the expiring Bush tax cuts. After the debate over the budget resolution is over, Congress must then decide what actual legislation to pass in order to make permanent or extend some portion of these tax cuts.
Citizens for Tax Justice has new national and state-by-state figures showing that the Congressional Republicans' approach to extending the Bush tax cuts would result in higher taxes for the poor and middle class, and far lower taxes for the rich, compared to President Obama's approach.
Read the new report and state-by-state fact sheets.
The tax cuts enacted under President George W. Bush, and the modifications of those tax cuts enacted under President Obama last year, all expire at the end of 2010. Over the next few months, Congress will decide which parts of these tax cuts should be made permanent, and which parts should be allowed to expire as scheduled.
Congressional Republicans and the President agree that the tax cuts enacted under Bush should be made permanent for 98 percent of taxpayers. Beyond that, they have mapped out dramatically different approaches.
The Congressional Republicans would make permanent the Bush tax cuts for the richest two percent as well, and they would NOT make permanent the modifications of the tax cuts that were included in the recovery act that President Obama signed into law last year.

President Obama would do the opposite. He would allow the tax cuts for wealthy to expire and would make permanent those modifications of the Bush tax cuts in the recovery act, which expand the Child Tax Credit and the Earned Income Tax Credit for working families.

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