Report Finds Tax Cuts Heavily Favor the Wealthy

[papau]

http://www.nytimes.com/2004/08/13/politics/campaign/13tax.html

Report Finds Tax Cuts Heavily Favor the Wealthy
By EDMUND L. ANDREWS

ASHINGTON, Aug. 12 - Fully one-third of President Bush's tax cuts in the last three years have gone to people with the top 1 percent of income, who have earned an average of $1.2 million annually, according to a report by the nonpartisan Congressional Budget Office to be published Friday.

The report calculated that households with incomes in that top 1 percent were receiving an average tax cut of $78,460 this year, while households in the middle 20 percent of earnings - averaging about $57,000 a year - were getting an average cut of only $1,090.<snip>

According to the new report from the Congressional Budget Office, about two-thirds of the benefits from the tax cuts, enacted in 2001 and 2003, went to households in the top fifth of earnings, with an average income of $203,740.

But the report also gave Republicans support for their contention that tax reduction had brought some benefit to people in almost all income categories. People with the bottom fifth of income, for example, averaging earnings of only $16,620, saw their effective tax rate drop to 5.2 percent from 6.7. Yet because lower- and many middle-income families had been paying very little federal income tax in the first place, those in that bottom fifth of earnings received an average tax cut of only $250.
<snip>

Put another way, people with the top 1 percent of income saw their share of the tax burden drop to 20.1 percent after the tax cuts from 21.9 percent under the old law.<snip>

"It's not just that lower-income people are getting smaller benefits,'' Dr. Gale said. "It's also that these tax cuts will eventually have to be paid for with either spending cuts or tax increases, and those are likely to be less progressive than the taxes they are paying now.''

[stevebreeze]

1. politics is the method by which we divvy up power.

Clearly there is much broken in politics when such vast disparity's in wealth can occur. Just ridding our selves of Bush(a must) is not enough. It is just the start of what good Americans must to to reclaim democracy.
:kick:

[madmike1]

2. I am a victim of bush's B.S.

I work in an environment that bushs little "budget adjustment" affects greatly. I hope the people that vote for him NEVER have to have one of their relatives hospitalized for any length of time, they will be screwed, Saudi style

I work in mental health, that jackass just CUT 22 BILLION dollars from the mental health budget.
What a jerk this guy is.

And did anyone notice that gwb just approved TONS of money for the victims in florida for the hurricane. Don't get me wrong, I know those folks need it, but we had floods here earlier this year and we are still waiting for our money.

It must be nice to have the president for a brother

[redandstinky]

3. Meanwhile...

Bush got a $41,000 tax cut last year. That is more than about half the people in the coutnry make all year.