The FACTS on The 2003 Bush Economic Plan

There is so much propaganda and mis-information going around about the $674 billion dollar Bush economic plan that it is time someone posted the facts and nothing but the facts.

These are facts from the Institute on Taxation and Economic Policy and Citizens for Tax Justice, January 7, 2003.

A computer analysis of the effects of Bush’s new tax cut proposals shows:

Despite some tax changes slightly lowering taxes on average families in the short run, three-fifths of Bush’s proposed tax reductions for this year would go to the best-off 10 percent of all taxpayers.

The typical taxpayer would get a tax cut of $289 this year. In contrast, taxpayers in the top one percent of the income scale, whose average income exceeds $1 million, would get tax cuts this year of more than $30,000 each.

“President Bush seems to have decided that the biggest problem facing America today is that the rich don’t have enough money,” said Robert S. McIntyre, director of Citizens for Tax Justice, which released the analysis of Bush’s plan.

Most of the new tax cuts in the President’s plan come from his proposals to (a) eliminate personal income taxes on dividends and (b) reduce capital gains taxes on sales of corporate stock.

In 2003, half of the tax reductions from these provisions would go to only one percent of all taxpayers, and almost three-quarters would go to the best-off five percent.

Bush and the scum republicans claim that his plan is fair and it will benefit everyone. Guess what, that statement is a lie and a load of crap.

Here are the no-spin facts -

lets start with the dividend cuts:

On average a person in the middle 20% who makes between $29,000 to $46,000 a year will get a $27 dividend benefit.

On average a person in the top 20% who makes between $46,000 to $77,000 a year will get an $83 dividend benefit.

On average a person in the top 15% who makes between $77,000 to $154,000 a year will get a $288 dividend benefit.

On average a person in the top 4% who makes between $154,000 to $374,000 a year will get a $1,332 dividend benefit.

Yet a person in the top 1% who makes $374,000 or more a year will get an $11,483 dividend benefit.

In reality the dividend benefit from the bush plan mostly goes to the top 5%, unless you make over $154,000 a year the dividend benefit is almost nothing.

How far will $27, $83, or $288 dollars get you ?

The truth is the bottom 80% make $77,000 a year or less so unless you make over $77,000 a year the average dividend benefit is $83 or less. If you are lucky enough to make between $16,000 and $29,000 your dividend benefit is $7 dollars.

Even if you make over $77,000 a year the dividend benefit is only $288. To get to the $1,332 dividend benefit you have to make over $154,000 a year.

If you make over $154,000 you are in the top 4% of the earners in america.

The only real benefit is to the people who make over $374,000 a year who will get the $11,483 dollar dividend benefit.

lets look at the tax cut benefits:

On average a person in the middle 20% who makes between $29,000 to $46,000 a year will get a $118 tax cut benefit.

On average a person in the top 20% who makes between $46,000 to $77,000 a year will get a $323 tax cut benefit.

On average a person in the top 15% who makes between $77,000 to $154,000 a year will get a $1,291 tax cut benefit.

On average a person in the top 4% who makes between $154,000 to $374,000 a year will get a $2,157 tax cut benefit.

But, if you are in the top 1% who makes over $374,000 a year you will get an $18,643 tax cut benefit.

What good will $323 dollars do you, make a car payment, Maybe ?

The facts show that the bottom 80% will get a tax cut of $323 dollars or less. You have to be in the top 15% and make over $77,000 a year to get any real tax cut benefits from the bush plan. The real benefits of the bush plan go to the top 5% of the people who make over $154,000 a year.

And now for the total savings from the Bush plan including dividends and tax cuts by income brackets.

Totals -

If you make $16,000 or less your total savings is (Little Drum Roll) $6 dollars.

If you make between $16,000 to $29,000 your total savings is (Little Bigger drum Roll) $99 dollars.

If you make between $29,000 to $46,000 your total savings is (Slightly-Big Drum Roll) $289 dollars.

If you make between $46,000 to $77,000 your total savings is (Sorta-Big Drum Roll) $657 dollars.

If you make between $77,000 to $154,000 your total savings is (Pretty-Big Drum Roll) $1,841 dollars.

If you make between $154,000 to $374,000 your total savings is (Very-Big Drum Roll) $3,524 dollars.

If you make more than $374,000 a year your total savings is (Really-Big Drum Roll) $30,127 dollars.

Download this study and read the chart included:

http://www.ctj.org/stim03.pdf