October 5, 2001 05:32 PM | Permalink |
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Facing growing public sentiment to delay or repeal future tax cuts to address our nation’s economic and budget problems, the Bush administration is pushing for just the opposite. It wants to accelerate the scheduled 2006 reductions in the top income tax rates to 2002. If adopted, the measure would reduce revenues by $120-150 billion over four years.
- Most of the new tax cuts would go to the richest one percent of all taxpayers, whose average 2002 tax cut would exceed $16,000.
- Four-fifths of the tax cuts would go to the best-off ten percent.
- In contrast, for three out of four taxpayers, the administration’s proposal would provide exactly zero in tax reduction.
“The administration’s attempt to use the current crisis as an excuse for further tax breaks for the wealthy is economically indefensible and a slap in the face to ordinary, patriotic taxpayers who are willing to sacrifice for the good of America,” said Citizens for Tax Justice director Robert S. McIntyre.
“Almost everyone understands that our economy needs both short-term stimulus to boost demand and long-term fiscal restraint to reduce current interest rates on mortgages and business investments,” McIntyre said. “Showering new tax breaks on the wealthy would be ineffective as a demand stimulus, and would make our future fiscal problems even worse.”