Wealthy Americans Benefit Most From Bush Tax Cut Deal

Protection of the Bush tax cut package proposed by the Obama administration this week has focuses on tax cuts for the wealthy. However the $900 billion package has tax breaks that apply to average Joes, especially if they have above average earnings. Economists are praising the deal as a stimulus bundle once thought impossible after the midterm elections. Ideally if all goes as prepared the Bush tax cuts could keep individuals from the need to sign up for personnel loans. Source for this article - Bush tax cut deal: the more you earn the more you benefit by MoneyBlogNewz.
Exactly about the Bush tax cuts offer
About $900 billion will be lost by the federal government in the next two years with the Bush tax cut deal. Individuals who live comfortable without the additional money could be getting g lots of the cash. 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.
Providing tax cuts to rich also
Every person benefits from the Bush tax cut offer. It would help somehow anyway. But the benefits are skewed in the direction of the wealthy. The current 6.2 percent taken out of paychecks annually 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 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 could be saved by those making between $200,000 and $500,000. Taxpayers making $1 million and more, about $129,000 -- almost 6.2 percent of income.
Investing the cash
Broken down into Republican and Democratic wishes, the Bush tax cut deal favors the latter. About $120 billion of the $900 billion cost will go to the rich for tax cuts. The proposed tax breaks from Obama would cost too. About $450 billion would go to that. The middle class would get about $360 billion for the Bush tax cut extensions. Economists are praising the offer. Analysts revised estimates for economic growth and employment upward on the news. Liberal research groups in WA said the Bush tax cut package will do a lot more to create jobs than anybody hoped with Republicans in control of Congress.
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

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