Distribution of Tax-Cut Benefits
The benefits that the tax cuts provide to different groups vary dramatically. New data from the Tax Policy Center show the effects in 2004 of the tax cuts that have already been enacted, including the corporate and estate tax cuts, as well as the individual income tax cuts. The Tax Policy Center data show that the combined effect of the tax cuts in 2004 is as follows:
The one-fifth of households in the middle of the income spectrum will receive an average tax cut of $647.
The top one percent of households will receive tax cuts averaging almost $35,000 — or 54 times as much as that received on average by those in the middle of the income spectrum.
Households with incomes above $1 million will receive tax cuts averaging about $123,600. The tax cuts for millionaires will cause their after-tax income to jump by 6.4 percent, nearly three times the percentage increase received by the middle fifth.
The overall shares of the tax cuts that are going to different households also are illuminating. The Tax Policy Center data show that:
In 2004, the middle 20 percent of households will receive 8.9 percent of the tax cuts.
By contrast, millionaires — totaling just 0.2 percent of U.S. households — will receive 15.3 percent of the tax cuts.[3] In other words, the small handful of millionaires will receive total tax cuts far larger than those received by the entire middle 20 percent of households.
The tax cuts will confer more than $30 billion on the nation’s 257,000 millionaires in 2004 alone.
Over the ten-year period, the richest Americans—the best-off one percent—are slated to receive tax cuts totaling almost half a trillion dollars. The $477 billion in tax breaks the Bush administration has targeted to this elite group will average $342,000 each over the decade.
By 2010, when (and if) the Bush tax reductions are fully in place, an astonishing 52 percent of the total tax cuts will go to the richest one percent—whose average 2010 income will be $1.5 million. Their tax-cut windfall in that year alone will average $85,000 each. Put another way, of the estimated $234 billion in tax cuts scheduled for the year 2010, $121 billion will go just 1.4 million taxpayers.
Although the rich have already received a hefty down payment on their Bush tax cuts—averaging just under $12,000 each this year—80 percent of their windfall is scheduled to come from tax changes that won’t take effect until after this year, mostly from items that phase in after 2005.
In contrast, the vast majority of taxpayers have already received most of their tax cuts from the 2001 legislation.
For the four out of five families and individuals making less than $73,000 this year, three-quarters of the tax cuts—averaging about $350 this year—are already in place.
Tax cuts for the 19 percent of taxpayers making between $73,000 and $356,000 this year will grow a little over the next four years as the cuts in the upper tax rates continue to kick in, but then will dwindle thereafter. By 2010, the tax cuts for this group will be no bigger as a share of income than they are
2006-07-18
03:54:27
·
13 answers
·
asked by
tough as hell
3