Color me confused! From the Bloomberg article cited by danarhea,
Internal Revenue Service data show taxpayers who earned at least $1 million reaped 43 percent of all savings from reduced rates on dividends and capital gains...
In contrast, households earning less than $75,000 received about 70 percent of the benefits from increasing the child credit and 64.4 percent of the benefit from creating the 10 percent bracket on the first $14,000 of taxable income, the Tax Policy Center says. In addition, it says 55.2 percent of the benefit from ending the so-called marriage penalty was received by families earning less than $100,000.
The bolded items suggest a headline that is completely at odds with the text. If 43 percent of all savings from reduced rates on dividents and capital gains were reaped by those earning at least $1 million, doesn't that mean that the balance of 57 percent was earned by those earning less than $1 million? The article doesn't provide a more granular breakdown, so we can't tell if the 57% was earned by those earning more than $200k or ???
Majority portions earned by lower income groups:
>
70 percent of the benefits from child care credit
>
64.4 percent from creating the 10% percent bracket
>
55.5 percent from ending the 'marriage penalty'
What am I missing here? The majority of the benefit of these tax changes impacted lower income groups, did they not?
As tax receipt continues to show, the tax cuts have actually helped increase overall government tax receipts:
The latest evidence is Treasury's monthly budget report for May that tax receipts were up by $137 billion, or 11.2%, for the first seven months of Fiscal 2006 through April. That's more than triple the inflation rate. And it comes on top of the $274 billion, or 14.6%, increase in federal revenues for all of Fiscal 2005, which ended last September 30.
Moreover, overall state revenues climbed by 8% in 2004 and nearly 9% in 2005, according to the Census Bureau, and more and more states are piling up big surpluses.
The Congressional Budget Office (CBO) completely missed this in their forecast. As recently as March, CBO was still advertising an expected increase in the baseline for individual income tax receipts of only $76 billion and merely $24 billion in corporate tax receipts for all of Fiscal 2006. Yet in only seven months, individual income tax revenues have already climbed by $56 billion and corporate receipts by $40 billion.
In a modest mea culpa, the CBO said,
"Various types of personal income not automatically subject to tax withholding may have increased faster than expected in 2005," explains CBO, in as much of a mea culpa as the bureaucrats allow themselves. "Sources of such income could include capital gains, noncorporate business income, interest, and dividends. In addition, growth in incomes in 2005 may have been concentrated more than expected among higher-income taxpayers, who face the highest tax rates." [emphasis added]
Source.
The economy has enjoyed an expansion that took off in earnest at about the time the 2003 tax cuts passed. Lower tax rates have since had precisely the result that supporters predicted, though don't look for that story on page one any time soon.
Moved to appropriate forum