Explain the Bush Tax Cuts to Me

[durutti]

I'm very confused.

Until recently, I'd thought that Bush got two tax cuts passed -- but a TomPaine.com article is telling me three.

Alright, somebody explain the Bush tax cuts to me. I can't really find anything that explains them comprehensively. What specific measures were involved with the first, second, and third cuts? What was wrong with them?

From what I've read so far, it seems as though the 2001 cut didn't do much for the bottom 60 percent, and that the 2003 cut was just a blatant give-away to the rich.

But I don't understand. When will the 2003 cut be activated? Is it happening concurrently with the 2001 cut? This is all so confusing...

Also, how much of the current 7.2 percent GPD is due to the tax cut? Is that the final figure, or will it later be revised downward?

[durutti]

1. bump

[OneTwentyoNine]

2. Its all hocus pocus BS

Chimpboy sent out those rebate checks back in 2001--it was in late summer,then he did the tax cut where the average worker gets about 2-3 bucks per week. Then he raised the child tax credit(there wouldn't be one without Clinton)$400.00 and sent out those checks.

What most good Murikans with their 2 minute attention span can't put together is that those child tax credit checks were only an advance. Next year when you file taxes there will be a line where you enter how much that check was for. You then subtract it from you child tax credit. I'd love to see the look on the face or the average Bush bootlicker when that fact hits them upside the head.

Hell,maybe Dems should come up with their own "tax cut". They send everyone $1,000 in June. Then next March on line 34b you have to enter $1,000 as income. Why not? most people would STILL think they got a tax break and SH is 100% responsible for 9/11.

David

[OldSoldier]

3. Not a bad idea...

The Dems send me $1000. I stick said $1000 into a six-month CD. At the maturity of the CD, I cash it out and return the government's money to them.

It will only be a little bit of income, but every bit helps.

[denverbill]

4. Good luck deciphering them. Here's all I know.

This year, he passed a law reducing the long term capital gains tax rate to 15% (was 20% for the wealthy) and the dividend tax rate to 15%. He also increased the child tax credit. If you have dividends or children you get a break. If you're wealthy, you get an enormous break. Warren Buffett used to pay 38% on dividends from his corporation, which is his biggest source of income. He'll save hundreds of millions next year in taxes.

The 2001 tax break is just bizarre. It is spread over many years. The first year reduced marginal rates, increased the amount of income before taxes start, etc. Every couple years, rates are supposed to be further reduced by a .5% of so. Once again, wealthy people get the biggest percentage cuts, going from a top rate of 38% to 33%. The rest of us generally get about a 2% cut. The last cuts don't take effect for many years.

I don't even know what the hell he passed last year. I can't keep track.

[Wellong]

7. Not true

Warren Buffett used to pay 38% on dividends from his corporation, which is his biggest source of income.

Berkshire Hathaway doesnt pay a dividend.

[Woodstock]

5. here's a link that uses simple language

http://www.ufenet.org/research/BushStimulus.html

[durutti]

6. Here's What I Don't Get

Most taxpayers didn't really get enough back to significantly raise demand. So how could it possibly be that the tax cuts were primarily responsible for the 7.2 percent GDP?

[Fescue4u]

8. I have no idea

But contrary to popular opinion, my taxes have dropped significantly.

But the exact structure and method is lost is the maze..Nonetheless Im sending off alot less money to the IRS, both last year and this year (with slightly higher income)

[fob]

9. Take the amount you contributed to bush*s campaign and multiply

by 1000. That is your tax cut if you are in the top 1% of income earners. If you are a corporation just fill out the number you need on the refund line on your tax forms, the IRS will compute the rest of the numbers(NOTE: your corp donations must be min 72% repub to qualify). All others get shit. Any cut in fed taxes are offset by state tax increases or cuts in services(firefighters & so cal).

And yes, the 7.2 bogus number will be revised downward,

1 - on a Tuesday in February at midnight.

2 - Dec 25th at midnight

Either way, it will not be reported.