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Gimp Experts: How can I erase parts of the upper layer to reveal parts of the layer beneath?

I've tried almost everything! I created a duplicate layer low and the colors became inverted and then tried to erase parts of the upper layer, but only showed a white background and does not act as normal in Photoshop deletes only the top layer and shows the layer below. Much help would be appreciated! ^ _ ^

In Photoshop (and I can not imagine Gimp is very different) Selecting the top layer and use the eraser tool. It erases the image on his cloak, as the white layers are transparent in the previous layer shows through.

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