The Near-Rich Did Really Well in the Fiscal Cliff Deal


Who were the biggest winners from the fiscal cliff deal? The invaluable Tax Policy Center has a preliminary analysis up, and it shows how much various income groups will save as a result of the deal. (These are savings compared to going over the cliff and letting the Bush tax cuts expire completely.)

A couple of notes. First, this doesn’t include the effect of the expiration of the payroll tax holiday or of the stimulus tax cuts, so it probably overstates the gains to the working and middle classes. Second, even with that, the near-rich are the biggest winners here. They’ll pay about 4-5 percent less in taxes than they would have if we’d gone over the cliff. The very rich will pay about 2 percent less in taxes, which is nearly as good a deal as the middle class got.

Bottom line: the very rich did slightly worse than the rest of us in this deal. But only slightly.

POSTSCRIPT: On the other hand, the very rich will also start paying Obamacare taxes this year. That wasn’t part of the fiscal cliff deal, but if you count that, they’re getting clipped more than the poor and the middle class.

THANK YOU.

We recently wrapped up the crowdfunding campaign for our ambitious Mother Jones Corruption Project, and it was a smashing success. About 10,364 readers pitched in with donations averaging $45, and together they contributed about $467,374 toward our $500,000 goal.

That's amazing. We still have donations from letters we sent in the mail coming back to us, so we're on pace to hit—if not exceed—that goal. Thank you so much. We'll keep you posted here as the project ramps up, and you can join the hundreds of readers who have alerted us to corruption to dig into.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.