<\body> Stories in America: Thanks for the $20 Tax Cut

Friday, May 05, 2006

Thanks for the $20 Tax Cut

During a time of war, citizens must make sacrifices for their country; under the Bu$h administration, sacrifices equal tax breaks. This is from the Center on Budget and Policy Priorities:
House and Senate negotiators have reportedly reached final agreement on the $70 billion tax-cut reconciliation package. Although no official description of the agreement has been released, press reports on the contents of the final package indicate that it will offer virtually no benefits to low- and moderate-income households, but shower high-income households with very large tax cuts.

About 87 percent of the benefits of the reconciliation conference agreement would flow to the 14 percent of households with incomes above $100,000, and 55 percent of the benefits would go to the 3 percent with incomes above $200,000. Households earning more than $1 million a year, which represent only 0.2 percent of all households, would receive 22 percent of the benefits of these tax cuts.

Looked at in dollar terms, the differential treatment of various income groups is even more striking. The average tax cut for the 20 percent of households in the middle of the income spectrum would be just $20. But the average tax cut for those in the top one percent of the income spectrum would be $13,800. For those with incomes above $1 million, the average tax cut would be $42,000.

4 Comments:

At 5/05/2006 1:56 PM, Anonymous truthseeker said...

What will you buy? Bush says you have to go shopping and spend your tax cut. If you're lucky enough to get a huge tax cut, put it in the bank and watch it improve the economy right before your eyes.

 
At 5/05/2006 6:43 PM, Anonymous timmy said...

Here's something you might want to think about before you get too upset about those tax cuts for the rich...

The lowest 80% of taxpayers average paying an effective rate of 0.4% in income taxes.

The top 10% of taxpayers average paying an effective rate of 16.0% in income taxes.

Starting to understand?

 
At 5/05/2006 10:14 PM, Anonymous Dick Cheney said...

Here's something you might want to think about, timmy: you don't pass tax cuts with the biggest deficits in history...oh, and in case you fogot, we're at "war"

 
At 5/06/2006 8:17 AM, Anonymous timmy said...

"...you don't pass tax cuts with the biggest deficits in history..."

Actually, that's the best time for tax cuts.

The Lower taxes ignite economic growth which in turn increase budget revenues and corporate profits. Profits are the mother's milk of business, the economy, and stock, ard are laying the foundation for even more job gains.

According to the Fed, after-tax profits for last year’s fourth quarter hit 8.1 percent of GDP, a post-WWII record. At a trillion dollars, profits are way ahead of their prior peak in 1999 and have nearly doubled since their recent trough in 2001. Family net wealth, the nation’s true savings rate, advanced 8 percent in 2005 to a record level of $52 trillion.

The point I was making earlier is that it's disingenious to complain about the wealthy being the primary recipients of tax cuts since they are the ones paying the lion's share of the taxes in the first place.

 

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