June 18, 2001 05:39 PM | Permalink |
The vast majority of American taxpayers will see the bulk of their Bush tax cuts take effect this year, leaving only a minority of taxpayers with a significant stake in the
|Effects of the final Bush tax plan in 2001 & thereafter|
|Income Group||Average tax cut in 2001||Average tax cut still to come||2001 cut as % of fully-phased-in tax cut|
|Lowest 20%||$ –56||$ –10||85%|
|ALL||$ –440||$ –950||32%|
|Bottom 60%||$ –243||$ –104||70%|
continued phase-in of the tax cuts after 2001. An analysis of the tax bill’s phase-ins released by Citizens for Tax Justice finds that:
- For taxpayers in the lowest fifth of income earners, 85 percent of the Bush tax cuts will show up on their 2001 tax returns or before.
- For the second fifth, 72 percent of the Bush tax cuts take effect in 2001.
- For the middle income group, 68 percent of the Bush tax cuts take effect in 2001.
- For the fourth quintile, 56 percent of the Bush tax cuts take effect in 2001.
Only the best-off fifth of the population will get most of its tax cut after 2001.
- Excluding the top one percent, about two-thirds of the tax cuts for the best-off fifth take effect after 2001.
- For the top one percent, 94 percent of the tax cuts take effect after 2001.
In 2001, seven percent of the total tax cuts go to the top one percent. But after 2001, more than half the remaining tax cuts will go to the top one percent.
“For most Americans, the post-2001 Bush tax cuts offer little gain, but lots of pain,” said Robert S. McIntyre, director of Citizens for Tax Justice. “That’s because most people will get little more in tax reductions after the first year, while losing large amounts in public services as the remaining upper-income tax cuts are phased in.”
(President Bush’s March budget submission envisions cutting domestic appropriations by as much as a third as a share of the economy by fiscal 2011.)