Thursday, June 01, 2006

Debunking the Myth of Tax Cuts Only for the Rich by Joe Watkins

President Bush’s proposal to create jobs and stimulate economic growth is the perfect remedy to create jobs and fix the ailing economy. Contrary to what the Democrat mythmakers continue to say the President’s tax cut benefits lower income families the most. Don’t believe it? Check out the facts.

A recent report by the Treasury Department noted that workers earning under $30,000 a year will see an average 17% cut in their taxes. In contrast, those making over $100,000 a year would see their taxes cut an average 11%. Lower income workers will see a larger percentage of their wages returned to them than higher wage earners.

There is more good news, who benefits the most from President Bush’s proposal to eliminate the dividend tax cut - seniors living on fixed incomes. Roughly half of the money put back into taxpayers’ pockets by the dividend tax cut will go to seniors who rely on dividend income as a steady source of retirement income. Again, contrary to the Democrat mythmakers’ claims, these are not rich Americans. Over 40% of the taxpayers that will benefit from eliminating the double tax on dividends earn less than $50,000 a year.

Under President Bush’s jobs and growth plan, families with income under $50,000 will pay a smaller share of the nation’s total income tax burden than they do today, while those making over $100,000 a year will see their share increase to over 73% of the total income tax burden. While higher wage earners will see their taxes cut they will continue to carry the greatest tax burden for our nation.

This President understands that when government cuts taxes, all Americans benefit. Consumer confidence grows because people have more cash on hand to invest and spend. Businesses benefit from increased consumer spending, and are then able to increase their capital investment, which in turn creates more jobs. That’s not "trickle down" that is trickle up - consumers who have more of their own earnings spend more and fuel economic growth.

For those who need further proof of the soundness of the President’s plan there is the evidence of history. In the last forty years, the reduction of taxes has specifically resulted in a significant rise in the Gross Domestic Product (GDP), a drop in the rate of unemployment and a rise in federal revenues. This was true of both the Kennedy and Reagan tax cuts. The Bush tax package will do the same for jobs and growth.

His plan includes tax relief that works for working families like reducing the marriage tax penalty, increasing the child tax credit, and accelerating already enacted rate reductions. These are right for the average taxpayer because it puts more money in their pocket and they are the right remedies for the overall economy because they spur consumer spending, thus boosting the economic recovery.

Plainly put, President Bush is on our side.


FreeMan said...

Bush's tax policy is against Afrikans & Poor People

akindele akinyemi said...

no its not. I have benefitted from this tax policy and you have too.