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MARIN COUNTY'S NEWS MONTHLY - FREE PRESS
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October, 2004
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Bush Distorts Who Benefits From Tax
Cuts
The
administration and most of the mainstream press are billing the tax package
passed by Congress on September 23 as a "middle class tax-cut."[1]
The reality is that the new law is more of the same: tax cuts that benefit the
rich and, in many cases, exclude the neediest families.
An analysis from the Urban Institute-Brookings Tax Policy Center shows that the middle 20 percent of earners "will
receive an average tax cut of $162 in 2005 from this legislation."[2] The
top fifth of earners, however, "will get an average tax cut of
$1,317."[3] As a result, the top fifth will receive two-thirds of all
benefits.[4]
The bill excluded a provision that would have extended the child tax credit
to four million low-income families who currently don't qualify.[5] Extending
eligibility to these families would have cost $4 billion.[6] Meanwhile,
conservatives included $12 billion in tax cuts for corporations.[7]
Sources:
1. "Congress Extends Middle-Class Tax Breaks," The Kansas City Star, 9/24/04,
http://daily.misleader.org/ctt.asp?u=1322174&l=58032.
2. "New 'Middle-Class' Tax-Cut Bill Represents Cynical Policymaking,"
Center for Budget and Policy Priorities, 9/23/04,
http://daily.misleader.org/ctt.asp?u=1322174&l=58033.
3. Ibid, http://daily.misleader.org/ctt.asp?u=1322174&l=58033.
4. Ibid, http://daily.misleader.org/ctt.asp?u=1322174&l=58033.
5. "Lawmakers Can't Resist Voting to Extend Bush's Tax Cuts," Los Angeles Times, 9/24/04, http://daily.misleader.org/ctt.asp?u=1322174&l=58034.
6. Ibid., http://daily.misleader.org/ctt.asp?u=1322174&l=58034 7. Ibid.,
http://daily.misleader.org/ctt.asp?u=1322174&l=58034 Visit
www.Misleader.org from more about Bush Administration distortion.