Rich Americans Benefit Most From Bush Tax Cut Offer

Tax breaks for people making a lot more than $200,000 get much of the attention with the Bush tax cut package. But the $900 billion package has tax breaks that apply to average Joes, especially if they have above average incomes. Ironically, the package turns out to be a form of govt stimulus derided by Republicans as they prepare to assume greater power in Congress. Preferably if everything goes as prepared the Bush tax cuts could keep individuals from needing to sign up for personel loans. Article resource - Bush tax cut deal: the more you earn the more you benefit by MoneyBlogNewz.
Information on the Bush tax cuts deal
The Bush tax cut deal will cost the federal government nearly $900 billion dollars over the next two years. A good package of that money will go to people who could live very comfortably without it. Things like payroll tax holiday, child tax credit, a tuition tax credit and a federal joblessness extension would go through 2011 too which benefits the middle class. If the Bush tax cuts had expired as planned, middle class working class individuals would be taking home up to $200 dollars less on payday starting next month. There would be a raise from 10 percent payroll tax to 15 percent for lower-income Americans.
Rich seeing tax cuts also
Everyone benefits from the Bush tax cut deal. It would help somehow anyway. The wealthy get the majority of the benefits though. The current 6.2 percent taken out of paydays every year will go down two percentage points for the payroll holiday tax. There can be ten times a lot more of a tax cut for somebody making $100,000 a year than someone making $10,000 a year will get. About $52,000 is earned by all U.S. families on average according to census data. About $1,180 will be saved by the Bush tax cut extension for average homes in 2011. That is 2.3 percent of income being saved. Between $200,000 and $500,000 will conserve cash too. It could be about $7,500. About $129,000 could be saved by taxpayers making $1 million or a lot more. That means about 6.2 percent of income is saved.
The money is spent too
Democrats aren't being favored at all with the Bush tax cut package. It's all going for Republicans. Tax cuts for the wealthy will cost $120 billion. That is just out of the $900 billion. About $450 billion will be taken for tax breaks Obama suggested. The Bush tax cut extensions for the middle class will cost $360 billion. The idea is likes by economists. They think it is brilliant. There has also been a revision of estimates for economic growth and employment. This was shown on the news. The Bush tax cut deal will help create a ton of jobs which wasn't expected with Congress ruled by Republicans based on research groups in Washington that are liberal.
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

By: Brittany Olson

Article Directory: http://www.articledashboard.com

Source for this article - Bush tax cut deal: the more you earn the more you benefit by MoneyBlogNewz.