Two New 2006 Tax Cuts Benefit Only Wealthiest Few

November 21, 2005 03:57 PM | | Bookmark and Share

Almost all of George W. Bush’s tax cuts are now in place, or have begun to phase in. But two of the most regressive (and most overlooked) tax cuts enacted in 2001 will begin to take effect starting on January 1, 2006.

Since 1991, under a law signed by the first President Bush, the benefits of personal exemptions and most itemized deductions have been gradually phased out for the very wealthiest taxpayers. In 2001, however, the second President Bush succeeded in repealing his father’s reforms. The repeal is scheduled to begin to take effect in 2006, with full repeal in 2010.

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Child Credit Phase-In Rules Hit Hurricane Victims Hardest

November 8, 2005 03:37 PM | | Bookmark and Share

Current federal tax law provides a credit against taxes otherwise due of up to $1,000 for each child age 16 or under. Not all families are eligible for the full credits, however.

In particular, the $1,000 child tax credit is phased in at lower income levels, in order to deny or limit its benefits to low-income working families. The threshold to begin receiving benefits was set at $10,000 in earnings in 2001, and is adjusted upwards every year for inflation.

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