NYT --- Bush Tax Cuts Help Rich

[kpete]

Big Gain for Rich Seen in Tax Cuts for Investments
By DAVID CAY JOHNSTON
Published: April 5, 2006

The first data to document the effect of President Bush's tax cuts for investment income show that they have significantly lowered the tax burden on the richest Americans, reducing taxes on incomes of more than $10 million by an average of about $500,000.


The analysis found the following:

¶Among taxpayers with incomes greater than $10 million, the amount by which their investment tax bill was reduced averaged about $500,000 in 2003, and total tax savings, which included the two Bush tax cuts on compensation, nearly doubled, to slightly more than $1 million.

¶These taxpayers, whose average income was $26 million, paid about the same share of their income in income taxes as those making $200,000 to $500,000 because of the lowered rates on investment income.

¶Americans with annual incomes of $1 million or more, about one-tenth of 1 percent all taxpayers, reaped 43 percent of all the savings on investment taxes in 2003. The savings for these taxpayers averaged about $41,400 each. By comparison, these same Americans received less than 10 percent of the savings from the other Bush tax cuts, which applied primarily to wages, though that share is expected to grow in coming years.

¶The savings from the investment tax cuts are expected to be larger in subsequent years because of gains in the stock market.

http://www.nytimes.com/2006/04/05/business/05tax.html?hp&ex=1144209600&en=ed5dcc7b9ba7ff36&ei=5094&partner=homepage

[spindrifter]

1. Well, whoop-de-do!

I'm so glad those rich MFs are getting some good, solid tax breaks from Brother George and his croneys.:nuke: :sarcasm:

[Warpy]

2. Those "other" tax cuts that didn't benefit the ultra rich

will have the effect of driving more and more of the middle class and upper working class into AMT territory, thus giving them all a hefty TAX HIKE.

[Octafish]

3. It's SO good to see the press doing its job.

Little late. Oh, about 26 years, by some estimations.

Me? The New York Whore Times hasn't done squat since November 22, 1963.

[MichiganVote]

4. I really can't think of anything to say...last week I bought shoes for a

poor kid. They were $16 and he thought they were gold. How pathetic the rich have become....

[American liberal]

5. I just filed my taxes. I'm in the 25% tax bracket.

Twenty five percent of my adjusted gross income goes to pay for Bush's bullshit war and to support the corporate welfare system. In addition, my freelance business (I have to work two jobs to make ends meet) has to pay the 15% Social Security tax PLUS income tax (minus modest deductions). And I don't have (can't afford) ANY investments outside of my 401(k). That upper 2% can kiss my ass.

[Telly Savalas]

6. The angle this article overlooks...

is that Republicans partially pay for these tax breaks for the rich by slashing programs and downloading responsibilities to the states and local governments, who then in turn have to raise taxes to makes ends meet. Such taxes at lower levels of government tend to be more regressive, hence impacting the middle and lower classes even more.

[American liberal]

7. Thanks for pointing that out, Telly.

In Illinois (and I hear they're discussing it in IN, as well), our gov't is now resorting to LEASING toll highway systems to generate revenue. There's a tiny stretch of highway just outside of Chicago that costs at least $2.50 to pass through. Sales tax just went up to 9% in Chicago and forget about buying gas or cigarettes around here. The taxes are insane. And that's the tip of the iceberg.

K&R. Stay educated, people. The MFers got us coming and going.