jump to navigation

CBO Study: Bush Tax Cuts Offer Most For Very Rich January 8, 2007

Posted by notapundit in Congress, Politics, US News.

NEW YORK (Dow Jones)–Families earning more than $1 million a year saw their federal tax rates drop more sharply than any group in the U.S. as a result of President George W. Bush’s tax cuts, according to a new Congressional study, The New York Times reported in its Monday editions.

The study, by the nonpartisan Congressional Budget Office, also shows that tax rates for middle-income earners edged up in 2004, the most recent year for which data was available, while rates for people at the very top continued to decline, the Times.

Based on an analysis of tax records and census data, the study reinforced the sense that while Bush’s tax cuts reduced rates for people at every income level, they offered the biggest benefits by far to people at the very top – especially the top 1% of income earners, the paper reported.

The study showed that although tax cuts for the rich were bigger than those for other groups, the wealthiest families paid a bigger share of total taxes.

The study estimates that the effective federal income tax rate, which excludes payroll taxes for Social Security and Medicare, declined modestly for people in the middle- and lower-income categories, the Times reports.


No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: