Rich Emerge Farther Ahead In Bush Tax Cut Deal

Tax breaks for people making more than $200,000 get much of the attention with the Bush tax cut offer. But the tax compromise includes other provisions that would help regular Americans, dependent upon how well off they are. Economists are praising the offer as a stimulus package once believed extremely hard after the midterm elections. Hopefully if all should go as planned the Bush tax cuts can keep folks from being forced to apply for a payday cash loans.
All about the Bush tax cuts package
The Bush tax cut deal will cost the federal govt almost $900 billion dollars over the next two years. A good package of that money will go to individuals who could live very comfortably without it. But what is left of the middle class stands to benefit from such items as a payroll tax holiday, child tax credit, a tuition tax credit and a federal unemployment extension carrying through 2011. If the Bush tax cuts had expired as planned, middle class taxpayers 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.
A lot more tax cuts for the wealthy
The Bush tax cuts package is something every person may enjoy. But the benefits are skewed toward the rich. The payroll tax holiday takes 2 percentage points off the current 6.2 percent taken out of paychecks. There will be ten times more of a tax cut for someone making $100,000 a year than someone making $10,000 a year will get. The data from the United States census showed what the average income is for an American family. It is about $52,000. 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. Families earning from $200,000 to $500,000 would save about $7,500. About $129,000 will be saved by working class individuals making $1 million or a lot more. That means about 6.2 percent of income is saved.
The cash is invested too
The Bush tax cut deal favors Republicans much a lot more than Democrats. Of its $900 billion cost, just $120 billion should go to tax cuts for the wealthy. The suggested tax breaks from Obama would cost too. About $450 billion would go to that. 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's brilliant. There has also been a revision of estimates for economic growth and employment. This was shown on the news. Research groups in Washington are pretty excited about the Bush tax cut package. They say a lot more jobs could be created with the bill than anything else.
Details from
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

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