Ramblings' Journal

The Bush Tax Cut simplified: It ain't just the "rich" who benefits

I've been challenged repeatedly by those who have gotten upset over the "Bush Tax Cut" (they usually spit behind that to show their disgust). The usual argument is that the tax cuts only benefit "the rich," as if this nebulous description describes folks in their lofty mansions and expensive condos (after all, if they can afford homes like that, they should pay out more to the rest of us, right?), without defining who "the rich" is.

Tavares Forby, a relatively new member of my blogroll, lays the truth out more succinctly.

Many liberals claim that the Bush tax cut only benefits the wealthy. Anyone with basic math skills can prove this is not true. Actually, “President Bush tax cut” cuts the most on the lowest income bracket. The income tax goes as follows for filing single:

Current Tax:

$0-$27,050	15%
$27,050-$65,550	28%
$65,550-$136,759	31%
$136,750-$297,350	36%
$297,350+	39.6%

New Tax

$0-$6,000	10%
$6,000-$27,050	15%
$27,050-$136,750	25%
$136,750+	33%

This chart breaks down per income tax bracket on the differences of income taxes comparing President Bush tax cut vs. current taxes.

$0-$6,000	from 15% to 10%: down 3%
$6,000-$27,050	no change: 0%
$27,050-$65,550	from 28% to 25%: down 11%
$65,550-$136,750	from 31% to 25%: down 19%
$136,750-$297,350	from 36% to 33%: down 8%
$297,350+	from 39.6% to 33%: down 16%

As we can see from this chart, the tax bracket $0-$6,000 has the greatest decrease in taxes which is 33%. The only tax bracket that was not effected was the tax bracket $6,000-$27,050. The second greatest decrease in taxes is 19% from tax bracket $65,550-$136,750. This is proof that President Bush tax cut is not only for the wealthy, but also for the lower and middle income tax bracket.

So by the leftists' definition, we all are part of "the rich," and we all get to benefit.

But we're supposed to be the bad guys, right? Yeah....right.

Posted by mhking at August 31, 2004 09:43 AM