Math in Bush tax cut package manipulated toward the wealthy

Protection of the Bush tax cut offer suggested by the Obama administration this week has targets on tax cuts for the rich. However the $900 billion package has tax breaks that apply to average Joes, especially if they have above average earnings. What hasn’t been said is that the Bush tax cut offer includes economic stimulus features the GOP would be dead set against in any form. With any luck, if all goes as prepared the Bush tax cuts will keep folks from being forced to apply for a paydayloans.

All about the Bush tax cuts offer

The Bush tax cut deal will cost the federal govt nearly $900 billion dollars over the next two years. A great package of that money will go to individuals who could live very comfortably without it. The benefits will roll into 2011 and will benefit the middle class. Some of the benefits contain a tuition tax credit, a federal unemployment extension, a payroll tax holiday and a child tax credit. About $200 less a payday starting next month would be going home to average middle class working class individuals if the Bush taxes ended. Lower-income Americans would have seen their payroll tax rate rise from 10 percent to 15 percent.

More tax cuts for the rich

There’s something for every person in the Bush tax cut deal. The wealthy get the majority of the benefits though. The holiday tax on payroll will lower the current 6.2 percent taken out of all salaries. It will go down 2 percentage points. Someone making $100,000 would get a tax cut ten times bigger than someone making $10,000. Census data shows the average United States family earns about $52,000 a year. About 2.3 percent of income could be saved in 2011 on average with the Bush tax cut extension with about $1,180. About $7,500 can be saved by those making between $200,000 and $500,000. Taxpayers making $1 million and a lot more, about $129,000 — almost 6.2 percent of income.

Where the cash goes

Democrats aren't being favored at all with the Bush tax cut offer. It’s all going for Republicans. About $120 billion of the $900 billion cost will go to the rich for tax cuts. Tax breaks suggested by the Obama administration take $450 billion from the total. The extensions on the Bush tax cuts would go to the middle class. About $360 billion would go to that. The idea is likes by economists. They think it is brilliant. The news showed estimates for economic growth and employment revised. Research groups in WA are fairly looking forward to the Bush tax cut package. They say a lot more jobs will be created with the bill than anything else.

Citations

CNN Money

money.cnn.com/2010/12/08/news/economy/tax_cuts_middle_lower_income/index.htm

Main Street

mainstreet.com/article/moneyinvesting/news/does-middle-class-need-tax-cuts?page=2

New York Times

nytimes.com/2010/12/08/business/economy/08leonhardt.html