February 8, 2001 11:49 AM | Permalink |
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On February 8, President Bush submitted a tax cut proposal to Congress that is patterned after a $1.6 trillion ten-year tax reduction proposed by candidate Bush during the 2000 presidential campaign.
Bush has claimed that under his plan, the “average” family would receive a tax cut of $1,600. However, this claim is misleading.
- Almost ninety percent of taxpayers would receive less than $1,600 in tax cuts if the Bush plan were fully implemented in 1999.
- Moreover, 27 percent of taxpayers would receive no tax cut at all under the Bush plan.
|Number of Taxpayers With Little or No Income Tax Cut
Under George W. Bush’s Tax Plan
(Numbers of taxpayers in thousands)
|Income Group||Number of
|# with No
|%||# with Less
|Lowest 20%||25,323||Less than $13,600||$ 8,600||18,945||74.8%||25,323||100.0%|
|Top 1%||1,264||$319,000 or more||915,000||144||11.4%||358||28.3%|
|Bottom 60%||75,972||Less than $39,300||$ 19,500||31,553||41.5%||75,553||99.4%|
|Top 10%||12,660||$92,500 or more||218,000||945||7.5%||5,432||42.9%|
|Source: Institute on Taxation and Economic Policy Tax Model.
Citizens for Tax Justice, August 2000, updated 2/7/2001
The Bush plan would treat married couples more generously than other tax filers. The typical married couple filing jointly would receive an income tax cut of $1,028 under the Bush plan, when it is fully in place in 2006.
But the typical single taxpayer would get only $249 from the Bush plan. In contrast, counting all the elements of the Bush tax program, the best off one percent of all taxpayers would get an average annual tax cut of $46,000 (in 1999 dollars)– almost 43 percent of the total tax cut.