How many dollars have the "tax cuts" saved you? Please bear in mind, tax returns are not the same as tax cuts.

Question

You submit tax returns every year and if you have overpaid you get back the extra amount you paid. That's called tax returns. Don't confuse that with tax cuts.
Tax cuts mean you pay less taxes. The current administration has given everyone tax cuts (or so they claim). In order to actually understand the effect of the cuts, compare how much you paid in taxes during a year with previous administration as a percentage of your annual earnings and then do the same for the current administration.
Use both percentages (previous admin and current admin) and find out the tax on your current income. Subtract the amount under current admin from the amount under previous admin. That's what the tax cut means to you. If the difference is negative you actually paid more taxes.

But anyways, I don't know how many of you actually will do this. But if you think about it many of you will actually discover what a tax cut is. It's not a tax return.

Answer 1

analysis found:

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 of 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.

The Times showed the new numbers to people on various sides of the debate over tax cuts. Stephen Entin, president of the Institute for Research on the Economics of Taxation, a Washington organization, and other supporters of the cuts said they did not go far enough because the more money the wealthiest had to invest, the more would go to investments that produce jobs. For investment income, Entin said, "the proper tax rate would be zero."

Opponents say the cuts are too generous to those who already have plenty. Rep. Charles Rangel of New York, the senior Democrat on the House Ways and Means Committee, said after seeing the new figures that "these tax cuts are beyond irresponsible" when "we're in a war, we haven't fixed Social Security or Medicare, we've got record deficits."

Because of the tax cuts, even the merely rich, making hundreds of thousands of dollars a year, are falling behind the very wealthiest, particularly because another levy, the alternative minimum tax, now costs many of them thousands and even tens of thousands of dollars a year in lost deductions.

The tax cut analysis was based on estimates from a computer model developed by Citizens for Tax Justice, which asserts that the tax system unfairly favors the rich. The group's estimates are considered reliable by advocates on differing sides of the tax debate. The Times asked the group to use the model to produce additional data on the effect of the investment tax cuts on various income groups. The analyses show that more than 70 percent of the tax savings on investment income went to the top 2 percent, about 2.6 million taxpayers.

By contrast, few taxpayers with modest incomes benefited because most of them who own stocks held them in retirement accounts, which are not eligible for the investment income tax cuts. Money in these accounts is not taxed until withdrawal, when the higher rates on wages apply.

Those making less than $50,000 saved an average of $10 more because of the investment tax cuts, for a total of $435 in total income tax cuts, according to the computer model.

If the majority of Americans would vote their economic reality we would never have a republican president again!!!

Answer 2

While your method proposed is essentially correct, it is only accurate if you have no changes in status. What are changes in status? Did you get a raise last year which changes your overall income. Did that raise actually change your tax bracket. Did you have a child, and thus become eligible for additional deductions and credits? Did you buy a house on which you could deduct interest. The list goes on and on. The simple fact is that the current tax code makes no sense. Even people who are trained to deal with it state that it is unweildly and confusing. We need a new tax structure in this country. There are several proposals, the flat tax and the fair tax being two.

There is also a point to be made about what taxes are being cut, income tax, capital gains etc. There is a simple logic that applies to every kind of tax. This is that if taxes are lower you get to keep more of your money. For most people if you have more money, you will spend more money. In the case of income tax it is personal buying power which aids in keeping the economy strong. In the case of capital gains it is investment capital, more investment capital in the marketplace means more jobs.

I find it amusing that people are willing to believe that you can just tax the rich. If it is one thing the rich are good at, it is in holding onto their money. Find new ways to tax them, and they will find new ways to shelter their money. It really is just that simple. At what point did being sucessful in life become such a crime in this country? As for tax cuts for the poor, from my experience most people who would be considered poor do not pay any taxes, they generally get everything they pay in back in refunds. This is not an indictment of the poor, merely a fact. I have personally known people who do not work a day all year, draw federal assistance checks and food stamps, then get thousands back in refunds at tax time. How you ask? Simple they have children and take advantage of the earned income credit. Now how you can use an EIC credit when you didn't actually earn a dime is beyond me, but that is the way the tax code is setup.

If you really want to see people pay their fair share equitably then the taxation system needs to be changed. Do not trust any rhetoric from the government whether it be Republican or Democrat because when it comes to taxes you can definitely believe that both sides are looking for ways to get more of your money. Whether it be from taking it through income tax, or generating it from sales tax revenue resulting from higher spending on good and services.

Answer 3

Tax cuts were only for the filthy rich. The poor and lower-middle class did not get anything. And that's the problem. At least let EVERYONE get some. I'm not saying tax the rich, give the poor. I'm saying treat everyone equally. If the rich get money, so should the poor.

Answer 4

About $3,000 a year.

Married with Children.

And I am a LONG way from rich.

The reason that many low income did not get a cut is that they don't pay anything in the first place. How do you reduct taxes below 0%?

Answer 5

Before I left my job I was getting an extra $10 a month...I think. No wait, it was $5. But then I had to pay more for benefits so that went out the window.

Answer 6

You're off base! You need to read the tax code. The so called tax cut is BS! The rate was reduced sure, but the deductions were all changed. Your really paying 1.5% more. I'm a banker's son I grew up with money being discussed every night at dinner. I have read the tax code and I know what I' talking about. The whole thing is smoke and mirrors propaganda! You've been flim flammed.

The Flim Flam Men :

They make speeches about they must have taxes, and every politician knows what is being done in Alaska. Alaska Pays all their residents with earth rights and doesn’t tax their residents. This makes the politicians liars!

They make speeches to get elected and make promises about what they will do for us. They say nothing about getting every dime of lobby money to do what big biz wants that’s opposite what they promised you they would do. That makes them cheats!

They stole your grandmother’s retirement money from SS. Now you face getting nothing for your SS payments. That makes them thieves!

They tax us, but they know the foreign companies pay no taxes on the goods they sell here. The goods are sold then bought on paper in a foreign port to skate the tax laws. Thus eliminating their profit on paper to cheat the US out of the taxes they owe. This makes them backstabbers!

They take lobby money to put earmarks and pork in every law that passes their desk. Then they do photo ops, a news clips to promote themselves as doing something good for us and America. So they corkscrew us!

They make back room deals and give our tax money to foreigners who build factories with our money. Then they write laws that send our jobs overseas. This makes them dirty dealers!

So lets total all this up. They lie, cheat, steal, backstab, corkscrew, and dirty deal. HELL their Flim Flam Men! Just like in the George C. Scott movie “ The Flim Flam Man”!
They are called the “ Honorable” Senator or Representative. Hell Flim Flam Men have NO honor what so ever! They’re crooks, criminals for God’s sake! The President Mr Bushit is the ring leader!

The BBC has film of ALL of them going in and out of Abramoff’s restaurant. That’s THE place in DC to get loaded with lobby money. The BBC has been running this story, and trying to get the US media to run it too. The US media refuses to run the story.

It’s time to take America back! Get registered! VOTE! Vote for anyone that’s not a Democrat or a Republican. They have ALL the power and ALL the control. They must bear ALL the responsibility for their gross mismanagement and abysmally poor judgment! It’s time to put THEM in the unemployment line!

Answer 7

I get less for more. But I'm not a rich Republican.

Hmmmm, Maybe if I owned an oil company like George...

Answer 8

They saved me a whopping 3 trips to the gas station...

Answer 9

i think i got the one a couple years ago, it was like about $199. thats the only one i remember them publisizing, they sure made a big deal over it too, i think i threw it away or bought some little crap thing with it i dont remember.

Answer 10

My CPA says that it's $653,513.04. Not bad for someone who earned $55,000 maximum when I was working.