Friday, September 17, 2010

Now we learn the truth about the Bush tax cuts

For years the Democrats have pretended that the Bush tax cuts from 2001 and 2003 were simply windfalls for the rich. But now, when they're about to expire, suddenly it's become clear that everyone benefited from those cuts. The Associated Press summarizes what it would mean for families if the cuts are allowed to expire.
A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011, according to a new analysis by Deloitte Tax LLP, a tax consulting firm. The same family making $100,000 a year would see its taxes rise by $4,500.

Wealthier families face even bigger tax hikes. A family of four making $500,000 a year would pay $10,800 more in taxes. The same family making $1 million a year would get a tax increase of $53,200.

The estimates are based on total household income, including wages, capital gains and qualified dividends. The estimated tax bills take into account typical deductions at each income level.

Democrats have been arguing for much of the past decade that tax cuts enacted in 2001 and 2003 under former President George W. Bush provided a windfall for the wealthy. That's true, but they also reduced taxes for the working poor, the middle class, and just about everyone in between.
No wonder the Democrats want to call their support for extending the Bush tax cuts as the "Obama tax cuts for the middle class." Yup. Those tax cuts that they've been criticizing for years have now morphed into an Obama initiative.