Letters: How the tax cuts really work
This political campaign is full of proposals regarding who and how much each of us are being taxed. Both candidates are offering "taxing some of us more and more of us less" one candidate is recommending leaving the Bush tax cuts in place. In ano...
This political campaign is full of proposals regarding who and how much each of us are being taxed. Both candidates are offering "taxing some of us more and more of us less" one candidate is recommending leaving the Bush tax cuts in place. In another candidates statement we are told "rather then relieving the burden on working families, the current administration has provided tax cut after tax cut to the wealthiest Americans and enacted tax breaks for the most well-connected corporations." Increasing the tax on the rich who are the folks, in the majority of scenarios, can pass the increased taxes to us the consumers, this is a poor economic policy and history points this out. Remember Lyndon Johnson's "Great Society Program" of the 1970s. While were trying to pay for this program, inflation went out of control resulting in the consumer paying the indirect taxation.
Unfortunately, we have forgotten how the Bush tax cuts have benefited us all. Clearly the Bush tax cuts has put more money in our pocket books. Let me share with you a couple of scenarios. A husband and wife with two children. Filing a joint return for the years 2000 and 2007 earning a identical sum of money. His job grossed $24,960 for the year, hers $31,200 using the standard deductions, the families income tax liability was $6,484 for 2000 and $3,999 for 2007. The savings is 38.3 percent or $2,485 savings from the Bush tax cuts.
Let's consider another family, husband and wife with two children. His income is $150,000 and her's $200,000 using standard deductions. The result, were income taxes due $108,357 for 2000 and $89,950 for 2007.
The difference is 17 percent or a savings of $18,407 because of the Bush tax cuts.
In the examples listed, the middle class family got a 38.3 percent tax break and the wealthier family got a 17.0 percent tax break.
So I ask you did the Bush tax cuts favor the wealthiest Americans? The facts show us clear it did not.