Tuesday, July 01, 2003
Tax cuts for the rich
People have been crying foul about Bush's tax cuts because they favor the rich. Well, when the top 1% of wage earners in America pay 40% of the country's income taxes, how can the government consider a tax cut that excludes them? For those people who think that the tax cuts are for the rich, behold (via Fox News):
The wealthy will receive the biggest dollar return for the income tax cut. But as a percentage of income tax liability, low- and middle-income taxpayers fare better. The tax cut returns 96 percent of the taxes a family of four earning $40,000 would have paid this year. It gives back 28 percent of the taxes the same family earning $75,000 would have paid. It gives back 9 percent to families earning $200,000.
Forget about hard dollars for a moment, and think in terms of percentages. The income tax cuts clearly give a larger break to lower- to middle-income taxpayers. Honestly, can anybody argue this?
You'll never find me complaining about a tax cut. It's my money. However, the government really needs to try a bit harder to curb spending. Our elected officials seem to have an incurable spending addiction, bankrolled by you and me.
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