Senate Democratic Tax Plan Analyzed

January 30, 2003 12:22 PM | | Bookmark and Share

Click here to see this analysis in PDF format.

Related CTJ Analyses
Distributional Analysis of Bush 2003 Tax Plan 1/27/03
Cost of Bush 2003 Tax Plan Estimated 2/3/03

The Senate Democratic tax cut plan introduced by Minority Leader Tom Daschle (D-S.D.) offers substantially larger tax relief to most taxpayers this year than President Bush’s latest tax cut proposal, provides far more economic stimulus this year, and at the same time is far less costly over the long-term—thereby avoiding the big budget-deficit expansion that the President favors.

An analysis of the Democratic plan released by Citizens for Tax Justice finds:

  • Under the Democratic plan, almost all families and individuals (94 percent) would receive tax relief. Under the President’s plan, a third of taxpayers would get absolutely nothing, and almost half would get less than $100.
  • Middle-income taxpayers would get an average tax cut of $542 under the Democratic plan, compared to $289 under the President’s proposal.
  • Low-income individuals and families would get an average of $266 each from the Democratic plan, compared to $6 under the President’s proposal.

The richest one percent of taxpayers would average $817 in tax breaks under the Democrats’ plan, versus $30,127 each under the Bush program.

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Bush 2003 Tax Plan a Big Fat Zero for a Third of Nation’s Taxpayers

January 27, 2003 05:19 PM | | Bookmark and Share

Almost a third of America’s couples and singles would receive absolutely no tax cut from President Bush’s proposals to accelerate some of his previously-enacted tax cuts and exempt dividends from personal income taxes. A new analysis released by Citizens for Tax Justice looks at the 2003 effects of the latest Bush tax cut plan on a state-by-state basis. The analysis finds that the shares of taxpayers slated to get no tax cut are especially high in lower-income states.


States with the highest share of taxpayers getting nothing from the 2003 Bush tax plan
% with no tax cut
Mississippi 44%
Louisiana 42%
West Virginia 42%
Arkansas 40%
Alabama 39%
Kentucky 38%
Oklahoma 38%
South Carolina 36%
Montana 36%
Idaho 35%
Tennessee 35%
New Mexico 35%

Nationwide, 31 percent of taxpayers would get nothing from the Bush plan.

The dozen states with the highest percentages of taxpayers who would get nothing at all from the latest Bush tax proposals include: Mississippi (44%), Louisiana (42%), West Virginia (42%), Arkansas (40%), Alabama (39%), Kentucky (38%), Oklahoma (38%) , South Carolina (36%), Montana (36%), Idaho (35%), Tennessee (35%), and New Mexico (35%). Ironically, all of these states except New Mexico cast their electoral votes for Bush in the last presidential election.

“It’s no wonder that the President’s latest round of upper-income tax cuts is polling so poorly,” said CTJ director Robert S. McIntyre. “Four out of five taxpayers would get no tax cut from Bush’s proposal to eliminate taxes on dividends, one in three would get zero from the entire package, and the median tax reduction is only $289. Why would most people want to endanger important programs, swell both federal and state budget deficits, and hurt our economy for so little in return?”

A table showing the shares of taxpayers in each state with no tax cut under the Bush plan, along with the President’s proposed tax cuts for median-income taxpayers and the top one percent in each state follows.

Click here to see this analysis in PDF format.


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Most of Bush’s Proposed New 2003 Tax Cuts Would Go to Top 10%

January 7, 2003 05:20 PM | | Bookmark and Share

President Bush’s new, $674 billion tax cut plan would boost the size of his 2001 tax cuts by more than half over this decade, sending our country even deeper in debt and endangering important public programs, while doing little to stimulate the economy. 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.
  • By the end of the decade, more than half of the President’s proposed new tax reductions would go to the top one percent.

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