January 30, 2008 03:00 PM | Permalink |
During his State of the Union Address on January 28, President Bush claimed that if his tax cuts are not made permanent, families everywhere will lose tax cuts worth an average of $1,800. This statement is highly misleading.
In 2010, when all of the Bush tax cuts are finally in effect, only 16 percent of families will have income tax cuts as large as $1,800. In other words, 84 percent of Americans will see a tax cut smaller than the “average” touted by the President.
For most people, the tax cut will actually be less than a third of that amount. In 2010, more than half of families will have income tax cuts totaling less than $600.