Repub Approach to Extending Bush Tax Cuts: heavily weighted to the wealthiest groups

[JohnWxy]

Report by the Citizens for Tax Justice:

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

Republican Approach to Extending the Bush Tax Cuts Would Result in $54,600 Break for
Richest 1% and Higher Taxes for the Middle Class, Compared to Obama's Approach
(State-by-State figures available at www.ctj.org/bushtaxcuts2010.php)

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Republicans in Congress have offered several tax proposals over the last several years, and all of
them start with making permanent all the tax cuts enacted under President Bush (including those
benefitting the richest two percent), and none of them include making permanent the
modifications of the Bush tax cuts included in the recovery act.1

# Under the Republican approach, the bottom 60 percent of U.S. taxpayers would pay $124 more
in 2011, on average, than they would under President Obama's approach.

# Under the Republican approach, the richest one percent of U.S. taxpayers would pay $54,600
less in 2011, on average, than they would under President Obama's approach.

# Under the Republican approach, the richest one percent of taxpayers would receive 37 percent
of the total tax cuts in 2011.
(table included showing tax cuts for each income group by quintile)

THIS IS NOT THE WAY TO BUILD A STRONGER GROWING ECONOMY. You need to have more take-home pay in the hands of the greatest number of people. This leads to the consumer spending which results in businesses experiencing increased demand for what they are selling. This is what causes businesses to hire more people. This is what enables well run businesses to make more money and invest more in R&D to develop new products and create new jobs.

Whenever we are in a recession the conservative investors always say: "Well, when the consumer comes back we will get out of this recession because the consumer represents 70% of the economy. "

Well, the consumer isn't going to spend money unless he has money. If you expect the consumer to be 70% of the economy he better get about 70% of the tax cut if you want him to hold up his end of the economy.

The Republican approach to extending the Bush tax cuts would result in the first 80% of the population (by income level) getting 26.7% of the tax cut.


I checked out income distribution here:http://en.wikipedia.org/wiki/Household_income_in_the_United_States


Here's the chart of incomes and percentages of population:



It shows that the percentage of the population through the band with incomes averaging $70 to $80K constitutes 76% of the population. Note: I don't know just how wide the fourth quintile used in the CTJ analysis was so mine is an approximation of the numbers they worked with. IF I include those with incomes from $80 - $90K in the count the percentage of the population amounts to 80.5%. That would match the percentage of people identified by CTJ as getting 26.7% of the tax cut under the Republican approach to extending the Bush tax cuts.