Friday, May 31, 2013

More than half of $900 billion in tax break benefits is going to families earning more than $450,000

The top ten tax deductions, credits and exclusions will keep $12 trillion out of federal government coffers over the next decade, and mostly benefit the wealthiest Americans, a Congressional Budget Office study shows.

Democrats say the study backs up President Obama's proposals to reform tax by raising revenues through limiting the amount of tax preferences for the wealthy.

More than half of the $900 billion in tax break benefits accrued in 2013 will go to the top 20 per cent of income earners, the non-partisan CBO said.