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Old 07-17-2008, 02:35 PM
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Default The Truth about the Bush Tax Cuts

There's so much out there that is just flat wrong when it comes to the common perception of the Bush tax cuts. Here's the link.

http://www.heritage.org/research/taxes/bg2001.cfm

Here's just one, perhaps the one that annoys me the most.

Quote:
Myth #10: The Bush tax cuts were tilted toward the rich.
Fact: The rich are now shouldering even more of the income tax burden.

Popular mythology also suggests that the 2001 and 2003 tax cuts shifted more of the tax burden toward the poor. While high-income households did save more in actual dollars than low-income households, they did so because low-income house(*)holds pay so little in income taxes in the first place. The same 1 percent tax cut will save more dollars for a millionaire than it will for a middle-class worker simply because the millionaire paid more taxes before the tax cut.



In 2000, the top 60 percent of taxpayers paid 100 percent of all income taxes. The bottom 40 percent collectively paid no income taxes. Lawmakers writing the 2001 tax cuts faced quite a challenge in giving the bulk of the income tax savings to a population that was already paying no income taxes.

Rather than exclude these Americans, lawmak(*)ers used the tax code to subsidize them. (Some economists would say this made that group's col(*)lective tax burden negative.)First, lawmakers low(*)ered the initial tax brackets from 15 percent to 10 percent and then expanded the refundable child tax credit, which, along with the refundable earned income tax credit (EITC), reduced the typical low-income tax burden to well below zero. As a result, the U.S. Treasury now mails tax "refunds" to a large proportion of these Americans that exceed the amounts of tax that they actually paid. All in all, the number of tax filers with zero or negative income tax liability rose from 30 million to 40 million, or about 30 percent of all tax filers.[17] The remaining 70 percent of tax filers received lower income tax rates, lower investment taxes, and lower estate taxes from the 2001 legislation.

Consequently, from 2000 to 2004, the share of all individual income taxes paid by the bottom 40 per(*)cent dropped from zero percent to –4 percent, mean(*)ing that the average family in those quintiles received a subsidy from the IRS. (See Chart 6.) By contrast, the share paid by the top quintile of households (by income) increased from 81 percent to 85 percent.

Expanding the data to include all federal taxes, the share paid by the top quintile edged up from 66.6 percent in 2000 to 67.1 percent in 2004, while the bottom 40 percent's share dipped from 5.9 per(*)cent to 5.4 percent. Clearly, the tax cuts have led to the rich shouldering more of the income tax burden and the poor shouldering less.[18]
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Old 07-17-2008, 08:58 PM
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Tax Cuts help the economy. They always have and they always will (under the presumption that democrats keep raising them, there is a tipping point, but we probably won't reach it)

Since this fact is so firmly engraved into history, the only thing high tax advocates can claim is that they only help the rich. So bravo for debunking an all to popular myth (myth being a euphenism for outright lie)
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Old 07-17-2008, 09:00 PM
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Taxes don't bother me what bothers me is that I think both sides of the aisle waste to much money
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Old 07-18-2008, 06:39 AM
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The left won't face reality on the actual numbers but instead rely on the ignorance of their constituents. People peddle propaganda like 'Bush is only favoring the rich' and use it to justify the beliefs they want to have which are often motivated by feelings instead of data.
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Old 07-18-2008, 11:46 AM
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Originally Posted by katiegrrl0 View Post
Taxes don't bother me what bothers me is that I think both sides of the aisle waste to much money
Amen! libertarians for the win!
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Old 07-26-2008, 07:59 PM
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Quote:
Originally Posted by Southpaw View Post
There's so much out there that is just flat wrong when it comes to the common perception of the Bush tax cuts. Here's the link.

http://www.heritage.org/research/taxes/bg2001.cfm

Here's just one, perhaps the one that annoys me the most.
That's a straw argument if I ever saw one.

Bush's tax cuts gave more money to the very wealthy than they paid into it. That's why they were unfair.

From 2001 through 2005, the best-off one percent will receive “only” 19.8 percent of the Bush tax cuts.
From 2006 through 2009, the share of the tax cuts going to the very rich jumps to 41 percent of the total.
By 2010, when all of the provisions of the bill—including complete repeal of the estate tax on extremely large estates—are scheduled to be fully in place, 51.8 percent of the tax cuts are targeted to the top one percent.

But in fact, in 2010 before the Bush tax cuts, the top one percent was expected to pay just over a quarter of all federal taxes (don’t feel too bad for these people; they’ll take in 19 percent of all the income). So a tax cut that gives the richest Americans more than half of its benefits is obviously anything but even-handed.

Compared to the federal taxes that would have been paid in 2010 before the tax cuts, Bush’s program reduces taxes on the wealthiest by 15 percent. For the remaining 99 percent of us, the tax cuts average only 5 percent. More tellingly, by 2010, the very rich will see their taxes fall by 5.7 percent of their income. For the remaining 99 percent, the average tax cut is only 1.2 percent of income.
http://www.ctj.org/html/gwb0602.htm

If tax cuts are across the board (all tax grades) and the income tax is on a graded scale, which it is, the collective tax burden would remain about the same. And it did.

This crap from the heritage foundation proves once again that The Heritage Foundation is garbage.

A very astonishing fact about the tax cuts is the Bush lied about them. The reason the EGTRRA tax cuts were set to expire (sunset provision) in 2010 was so that Bush could campaign on the low cost of his tax cut to the government...see, it's not so bad a cost.

Then Bush turns around seven years later and wants the tax cuts permanent.
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Old 07-26-2008, 08:17 PM
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If this were true, then why did Warren Buffett critisize the system? Do you really think he is ignorant of how the tax system works?

Just what lobbying firms do all of you work for???
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Old 07-26-2008, 08:21 PM
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Originally Posted by Infinate812 View Post
If this were true, then why did Warren Buffett critisize the system? Do you really think he is ignorant of how the tax system works?

Just what lobbying firms do all of you work for???
Oh yeah -- there's a source for you. If Warren Buffet says it, it must be true. Get a grip ... study Buffet for a little bit. Find out what his motive is ... not what you WANT it to be.
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Old 07-26-2008, 08:32 PM
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Originally Posted by Infinate812 View Post
If this were true, then why did Warren Buffett critisize the system? Do you really think he is ignorant of how the tax system works?

Just what lobbying firms do all of you work for???
What did Warren Buffet criticize?

You'll have to explain your point.
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Old 07-28-2008, 02:25 PM
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Quote:
Originally Posted by Decker View Post
What did Warren Buffet criticize?

You'll have to explain your point.

Sorry, here's the link to the Washing Post article: http://www.washingtonpost.com/wp-dyn...062700097.html

He paid a smaller percentage of his taxable income than his receptionist.

It's a real life example of how we are getting the screw.
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