Here's the naked truth from the truly bi-partisan
Congressional Budget Office (CBO). But, of course,
it's not the naked truth that has the most impact
--because the naked truth is almost never allowed to
escape into the air waves. It's how the Media covers
the Economy, Stupid.
Vicki Allen, Reuters: One-third of President Bush's
tax cuts have gone to the wealthiest 1 percent of
Americans, shifting more burden to middle-income
taxpayers, congressional analysts said on Friday...
Using the CBO's figures, Democrats in Congress said
the top 1 percent, with incomes averaging $1.2 million
per year, will receive an average tax cut of $78,460
this year, and have seen their share of the total tax
burden fall roughly 2 percentage points to 20.1
percent.
In contrast, the report showed that households in
the middle 20 percent, with incomes averaging $57,000
per year, will receive an average cut of $1,090 while
their share of the tax burden would move to 10.5
percent from 10.4 percent.
The CBO report said about two-thirds of the benefits from the cuts went to households in the top 20 percent, with an average income of $203,740.
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http://www.truthout.org/docs_04/081504E.shtml
CBO Report: Bush Tax Cuts Tilted to Rich
By Vicki Allen
Reuters
Saturday 14 August 2004
WASHINGTON - One-third of President Bush's tax cuts
have gone to the wealthiest 1 percent of Americans,
shifting more burden to middle-income taxpayers,
congressional analysts said on Friday.
The report by the nonpartisan Congressional Budget
Office and calculations by congressional Democrats
based on the CBO findings fueled the debate over the
cuts between Bush and his Democratic challenger in
November, Sen. John Kerry.
Using the CBO's figures, Democrats in Congress said
the top 1 percent, with incomes averaging $1.2 million
per year, will receive an average tax cut of $78,460
this year, and have seen their share of the total tax
burden fall roughly 2 percentage points to 20.1
percent.
In contrast, the report showed that households in
the middle 20 percent, with incomes averaging $57,000
per year, will receive an average cut of $1,090 while
their share of the tax burden would move to 10.5
percent from 10.4 percent.
The CBO report said about two-thirds of the benefits
from the cuts went to households in the top 20
percent, with an average income of $203,740.
People with earnings in the lowest 20 percent, which
averaged $16,620, saw their effective tax rate fall to
5.2 percent from 6.7 percent, the CBO said. But
Democrats said that meant their average tax cut was
only $250.
Democrats said the CBO calculations, which they
requested, confirm the view of independent tax
analysts that the tax cuts enacted in 2001 and 2003
have heavily favored the wealthiest taxpayers.
"It is bad enough that George Bush has no plan to
help middle-class families squeezed by declining wages
and skyrocketing costs for healthcare, energy and
college tuition," Kerry said in a statement.
"Now we find that he is deliberately stacking the
deck against them. This is the straw that will break
the back of middle-class families."
But Republicans said the CBO numbers showed Bush has
provided tax relief for people of all income levels.
Rep. Bill Thomas of California, chairman of the
House of Representatives Ways and Means Committee,
said the report showed Bush's tax cuts "have made the
tax code more progressive and taxpayers across the
income spectrum will be saddled with higher tax
burdens if the tax cuts are not made permanent."
Bush has said the cuts provided crucial support to
the U.S. economy after the Sept. 11 attacks and the
three-year decline in U.S. stocks.
But Kerry, who wants to roll back the cuts for
households whose incomes top $200,000 a year, has said
the cuts did little for the economy, and helped cause
the federal budget to swing from a more than $100
billion surplus in 2001 to a projected deficit
exceeding $400 billion this year.
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