The White House announced a package of tax proposals as part of what President Obama called “Middle Class Economics” in the State of the Union Address. This paper summarizes and discusses TPC’s distributional estimates, focusing on the distribution of all income tax cuts, the major tax cut provisions, and the largest tax increase provisions including the new fee on financial institutions. The tax cuts primarily benefit low-income single workers and working age households with children. The income tax increases primarily affect those with very high incomes and those with a substantial amount of capital assets.
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