Bush Tax Cuts Have Provided Extremely Large Benefits to Wealthiest Americans Over Last Nine Years

[MindMover]

The tax cuts first enacted under President Bush in 2001 and 2003 have made the tax code less progressive and delivered a large windfall to the highest-income taxpayers.[1] Tax Policy Center estimates for the years 2004 to 2012 (the years for which TPC provides data that are comparable from year to year) give us a sense of the cumulative effect of these tax cuts:

The average tax cut that people making over $1 million received exceeded $110,000 in each of the last nine years — for a total of more than $1 million over this period.

The tax cuts made the tax system less progressive. In each of the nine years from 2004 through 2012, the tax cuts increased the after-tax income of the highest-income taxpayers by a far larger percentage than they did for middle- and low-income taxpayers. For example, in 2010, the year in which all of the Bush income and estate tax cuts were fully phased in, they increased the after-tax income of people making over $1 million by more than 7.3 percent, but increased the after-tax income of the middle 20 percent of households by just 2.8 percent.[2]

At a time of pressing fiscal problems and growing income inequality, continuing such large windfalls for the highest-income taxpayers is unaffordable.

http://www.cbpp.org/cms/index.cfm?fa=view&id=3811

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Very good article with graphs ....

[Scuba]

1. Yes, but we have to give them a bigger tax cut or they'll lose their incentive to work....

... and we have to tax the lower income people more or they'll lose their incentive to work.

[Atman]

14. And without that money, who will teach the ponies to dance?

Oh, the humanity!

[zzaapp]

2. Hi mindover

"growing income inequality"

If you were King, what changes would you make to correct this problem?

[MindMover]

3. Oh, what to do about income inequality .... "wringing my hands"

What to do about income inequality

James Q. Wilson [“Angry about income inequality? Don’t blame the rich,” Outlook, Jan. 29] presented a selective reading of our book “Class War?” and a mistaken view of what Americans think about economic inequality.

True, Americans are not consumed with envy of the wealthy. Most applaud success and hope to achieve it themselves. Some say it is “still possible” (i.e., not impossible) to start out poor, work hard and become rich.

But the number of Americans expressing such optimism fell sharply after 2008, as actual mobility declined. Most Americans think inequality of income and wealth has become too great. Most favor substantially higher taxes on the wealthy.

Our current research on wealthy Americans indicates that the wealthy largely agree. They, too, are concerned about widening inequalities. Most accept the idea of progressive taxation. Most express willingness to pay more taxes to help others with such things as early childhood education.

At a time when government revenues are at a historic low point, the willingness of the wealthy to pitch in and help those on the bottom would seem to be particularly welcome.

http://www.washingtonpost.com/opinions/what-to-do-about-income-inequality/2012/01/31/gIQAvvrzfQ_story.html

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So if you were Queen for the day, what would you do about income inequality ...?

[zzaapp]

7. I'm not really sure what I would do, that's why I value the opinions

of others. It's a sticky situation.

[MindMover]

41. Only sticky when you are rolling in dough and then it gets sticky ...

[zzaapp]

42. Thank you mindmover. I appreciate the honesty.

[EOTE]

4. Ummmm, a more progressive tax code is the obvious solution.

It's pretty easy when you think about it. The tax code was made extremely regressive by the Bush tax cuts. Undoing them, and perhaps making the tax code even more progressive would do an enormous amount to undo that income inequality. The rich have done extremely well this past decade on the backs of everyone else. It's about time they started paying their fair share.

[MindMover]

5. +++++++++++++++++++.....no sheit

[deutsey]

6. Bingo!

[zzaapp]

8. Hi EOTE...thanks for the comment.

"The rich have done extremely well this past decade on the backs of everyone else."

I don't know any rich people so I can't respond.

[EOTE]

9. They're becoming less and less common.

And more and more wealthy. But the way to deal with income inequality has remained pretty much the same during this past century.

[zzaapp]

10. EOTE

I realize that you are talking about the mega-mega wealthy, paying their fair share. I 'm just not sure how we would determine what is a fair share. Who decides? What percentage would YOU use?

[EOTE]

12. Who decided the tax structure of the Bush tax cuts? The president, typically.

As for me, I wouldn't set the top rate at less than 50%. Maybe the top rate would start at a couple million. Our current top rate would be increased to about 36% and start at 250K and would increase fairly linearly to the 2 million dollar 50% rate.

[zzaapp]

13. from a personal perspective,

I'm kinda in that 36% range. Married, 4 children. Thats over 1/3 of my income . That would hurt. I have college costs and a lot of other things coming my way. Just sayin.

[Scuba]

15. If I read it correctly, the 36% suggestion would be on income over $250,000...

... if you can't make it on that, college expenses and all, then you're not trying.

[zzaapp]

17. You are right scuba, and thanks

I will have to sit down and re-think my whole world view and reset my priorities, or at least try harder. I realize now how selfish I've been for the last decade. Are you available for financial advice ?

[Scuba]

18. No, I don't provide financial advice. I will note though....

... that I never made close to $250,000 in any one year, yet I managed to fund 100% my two children's college educations and still retire at age 59 1/2.

[zzaapp]

19. Oh, I forgot to mention, I also have a heroin habit.

[Scuba]

20. Yeah, you might want to watch your H budget carefully.

[zzaapp]

22. LOL

[EOTE]

21. You know that 10+% of the population believes they're in the top 1% of income earners.

That's probably where your confusion comes in. You seem to think that it would be rather difficult to make the tax code more equitable and that you'd somehow suffer from it becoming more progressive. A lot of people think that way, but if you actually WOULD suffer from such a plan, you should be counting your blessings that you're that lucky.

[zzaapp]

23. Lucky?

[zzaapp]

24. How about this?

How about if EVERYBODY paid their fair share?
What a concept.

[EOTE]

25. Ummmm, that's exactly what I'm suggesting.

Are you saying you support the Bush tax cuts? Because if you are, you probably don't belong on this site. And yes, you're damned right I'd consider you lucky if you're making more than a quarter million dollars a year on this economy. Are you having a hard time keeping up or something?

[EOTE]

27. Wow, you really don't get it.

Who the fuck called anyone the enemy here? That's only you, champ. Nearly everyone here believes that the wealthy have had it extremely well this past decade (or 3) and a fuck load of that is due to the Bush tax cuts that overwhelmingly went to the top 1%. Are you really that thick not to understand that? Are you aware that many people work their asses off just as much as you do and still struggle to get by? Sorry, but you seem utterly clueless. You apparently make 300K per annum in this economy and you're STILL bitching. You need a wakeup call and quickly. I'm not attacking a damned thing and the fact that you still whine your ass off and complain about being attacked speaks very poorly of you. You really need to get a clue. You don't need to be polite or accommodating, you need to use some common sense.

[zzaapp]

29. Thank you for your kind words. Although you will never admit it,

I can tell that I touched a chord deep within you. It's ok, we can still be friends.

[EOTE]

31. I have no desire to be friends with anyone who's incapable of grasping such simple concepts.

I can attempt to educate you, but my success really depends on whether or not you're capable of being educated. I'm still in shock that there are DUers who are so thick that they support the Bush tax cuts. Really? Do you not realize what an incredible clusterfuck those Bush years were? Really?

[zzaapp]

33. Deep Breath....in...out...in...out

[EOTE]

36. Do you have anything other than right wing bullshit to contribute?

You've stopped even trying to present legitimate information and instead have just resorted to posting nonsense. I can hardly blame you, though. Your intellect seems lacking at the very least.

[zzaapp]

38. I'll ask one more time...please stop...you're embarrassing yourself

I will not reply further to anyone as mean spirited as you.
I wish you all the best, and I hope fortune smiles upon you.

[EOTE]

40. Umm, you're the one who's incapable of answering extremely simple questions.

What you take as "mean spirited" I take as trying to explain relatively simple concepts to one who can only think in the most simple of terms. I only wish that you learn to think objectively before you leave college.

[EOTE]

39. So, you've given up entirely on actually providing answers?

I know those tough questions can make your little mind ache, but you could at least try. Go on. Tell us all why the Bush tax cuts were a good thing. "Job makers" like yourself sure have done a pretty fucking terrible job providing all those jobs that Bush promised. Silly little thing still thinks supply side economics isn't entirely discredited.

[zzaapp]

34. That's ok, I still like you.

[EOTE]

37. So, what other far right concepts do you support?

Overturning Roe V. Wade? Think our prison population is too small? Want to get rid of labor regulations? I tell you, I've heard a lot of right wing bullshit on this site, but you're the first DUer I've ever met who supports the Bush tax cuts. Pathetic.

[EOTE]

35. "I don't know any rich people so I can't respond."

So, you're saying you make more than a quarter million dollars a year, yet you know no rich people. Either you're a liar, or you have a pretty sad definition of what defines "rich". I think you know which option I tend to believe.

[EOTE]

28. And frankly, I don't believe much, if at all of what you said.

You seem to be suggesting that you make more than a quarter million dollars a year and yet you seem to have no clue as to how the tax bracket system works? Yeah, I'm not buying that for one minute, champ.

[zzaapp]

30. it's......ok.......please don't dig yourself in any deeper. Let's be friends.

[EOTE]

32. Dig myself in deeper? What? By exposing your idiocy?

I'll keep it up, thanks. I'll expose right wing bullshit wherever it resides. I just never thought I'd hear such right wing bullshit from a DUer.

[HangOnKids]

43. Not everyone who posts is a fan of DU

Just sayin'. Also the poster isn't going to reply for the next 24 hours at least, he got a time out.

[EOTE]

44. Wow, I didn't know DU3 had times out. I can't wait to see what I'll hear next from him.

Probably more blather about how democrats are making it just so awful for rich people that there's just no incentive to be rich any more.

[HangOnKids]

45. If You Get A Post Hidden In A Thread

You can not post in that thread again for 24 hours. That doesn't mean the poster will not show up in another thread or start one of his own, but he/she is not allowed to post in the original thread until tomorrow.

I think his next screed will be something along the lines of making his children and wife wear homemade clothes he stitched from flour sacks.

"WHY DO YOU HATE PEOPLE WHO WORK HARD EOTE?" <_________

[EOTE]

46. Oh, thanks for clearing that up.

I knew about the OP ban, but I didn't realize it lasted a day. I thought once you get a post hidden, you were barred from participating in that particular OP for good. I didn't notice my friend had gotten his post hidden.

I do find it rather hilarious that he goes on this huge screed about democrats attacking the wealthy when all we've (I've) asked for is to go back to the tax code as it existed prior to Bush. He really seems to be suggesting we'd still be better with the chimp still in office. I've seen so much here, but defense of the Bush tax cuts is something I NEVER thought I'd see here.

[EOTE]

16. If you're in that 36% range, that means that you're currently in the 35% range.

So that would mean that you're making over 250K a year. Now mind you that that additional 1% of taxation would not affect anything you've made under 250K, so that 1% would only be after 250K. I don't know what you make, but let's say you make 300K per year. If that were the case, that 1% would amount to an additional $500 per year. I think if you're making 300K per year, you could buck up and chip in another $500 per year to make up for how incredibly well you've done the past decade. Makes sense, no? And no, that number would not be over 1/3rd of your income unless you made substantially more than 250K per year. Do you see how tax brackets work now?

[HiPointDem]

11. kr