A few figures on what the Bush Tax Cuts actually did:
1) Lowered -all- income tax brackets. The greatest change was not for the rich, but for the lowest tax brackets -- single-filers under $7k/yr and families under $14k/yr saw their total obligation drop by 33%, compared to less than 10% change for the highest bracket.
2) Capital Gains Tax decreased from 10% to 8%. This primarily affects two areas: The cost of expanding a business (and thus creating jobs), and the cost of home ownership. The latter affects all Americans who own their homes. Example: Your house is currently assessed at $80k value. You put work into it to improve it and make it more pleasant for you to live in, say, furnishing the basement. It is re-assessed at $100k. You now owe tax on the difference, because you have gained capital.
3) Increase the limit on pre-tax contributions to retirement plans, affecting all working Americans.
4) Increased the minimum limit of the Estate Tax from $625,000 to $1,000,000, allowing small business and farms to be passed to their owners' heirs without crippling tax burdens but having very minor effects on the significantly wealthy.
Another fact: The poorest 40% of Americans pay zero or negative income tax.
Taxes on corporations are paid by everyone who works for them and buys from them, because the way corporations pay taxes is to decrease expenses (by cutting jobs, most often), and by raising prices.
Over the six quarters immediately previous to the Bush Tax Cuts, the GDP increased by 1.7%.
Over the six quarters immediately following the Bush Tax Cuts, the GDP increased by 4.1%.
In 2000, the wealthiest 20% of Americans paid 81.2% of all income taxes. The poorest 20% of Americans paid -1.6%.
In 2004, the wealthiest 20% of Americans paid 85.3% of all income taxes. The poorest 20% of Americans paid -2.9%.
Who's benefiting from these tax cuts? The people paying more of the burden (the rich), or the people paying less of it (the poor)?
--
Sucrose Octanitrate.
Proof positive that with sufficient motivation, you can make anything explode.
1) Lowered -all- income tax brackets. The greatest change was not for the rich, but for the lowest tax brackets -- single-filers under $7k/yr and families under $14k/yr saw their total obligation drop by 33%, compared to less than 10% change for the highest bracket.
2) Capital Gains Tax decreased from 10% to 8%. This primarily affects two areas: The cost of expanding a business (and thus creating jobs), and the cost of home ownership. The latter affects all Americans who own their homes. Example: Your house is currently assessed at $80k value. You put work into it to improve it and make it more pleasant for you to live in, say, furnishing the basement. It is re-assessed at $100k. You now owe tax on the difference, because you have gained capital.
3) Increase the limit on pre-tax contributions to retirement plans, affecting all working Americans.
4) Increased the minimum limit of the Estate Tax from $625,000 to $1,000,000, allowing small business and farms to be passed to their owners' heirs without crippling tax burdens but having very minor effects on the significantly wealthy.
Another fact: The poorest 40% of Americans pay zero or negative income tax.
Taxes on corporations are paid by everyone who works for them and buys from them, because the way corporations pay taxes is to decrease expenses (by cutting jobs, most often), and by raising prices.
Over the six quarters immediately previous to the Bush Tax Cuts, the GDP increased by 1.7%.
Over the six quarters immediately following the Bush Tax Cuts, the GDP increased by 4.1%.
In 2000, the wealthiest 20% of Americans paid 81.2% of all income taxes. The poorest 20% of Americans paid -1.6%.
In 2004, the wealthiest 20% of Americans paid 85.3% of all income taxes. The poorest 20% of Americans paid -2.9%.
Who's benefiting from these tax cuts? The people paying more of the burden (the rich), or the people paying less of it (the poor)?
--
Sucrose Octanitrate.
Proof positive that with sufficient motivation, you can make anything explode.