Wednesday, April 05, 2006

Tax cuts a windfall for rich

"NEW YORK (CNNMoney.com) - President Bush's tax cuts for investment income have significantly lowered the tax burden on the richest Americans, reducing taxes on incomes of more than $10 million by an average of about $500,000, according to a report Wednesday.

An analysis of Internal Revenue Service data by The New York Times found that the benefit of the lower taxes on investments was more concentrated on the very wealthiest Americans than the benefits of President Bush's two previous tax cuts.

The Times analyzed IRS figures for 2003, the latest year available and the first that reflected the tax cuts for income from dividends and from the sale of stock and other assets, known as capital gains.

According to the study, taxpayers with incomes greater than $10 million reduced their investment tax bill by an average of about $500,000 in 2003, and their total tax savings, which included the two Bush tax cuts on compensation, nearly doubled, to slightly more than $1 million."

Congress is now debating whether to make the Bush tax cuts permanent.

Report: Tax cuts on investment income a windfall for rich - Apr. 5, 2006

I guess the theory here is that the rich will reinvest the money and create new jobs to stimulate the economy. But if they werent doing that already with their own personal $10million a year income, I dont think this added $1million they are now saving will really do all that much good. No this is just another way for the rich to help the rich and piss more on the poor. Call or email your Congress person and express your views on this.

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