Reply #51: temporary effect of tax cut [View All]

[Woodstock]

http://www.ufenet.org/research/BushStimulus.html

...Half of all Americans will receive less than $100 from the tax cut in 2003, according to Citizens for Tax Justice. But Americans making $1 million or more will receive $93,500 from the tax cut, according the Tax Policy Center.

Over the next four years, the bottom 60 percent of taxpayers will receive just 9 percent of all the tax cuts, while just the top one percent receives 39 percent of the tax cuts. The tax cut benefits flowing to the top 1% far outpace the 23% share of federal taxes they now pay.

The distribution of tax cuts do not get better with age. The tax cuts targeted at middle- and low-income families sunset, or disappear, after 2004. As a result, in 2006, 52 percent of the Bush tax cut goes to the wealthiest 1 percent of Americans...

Most states are constitutionally required to balance their budgets. So, in order to close their budget deficits, state legislatures will have to either cut spending or raise taxes. By cutting spending, they will layoff public sector workers leading to further declines in demand. Most states rely on the sales and property taxes for revenue, which most directly affect middle- and low-income families. ..