Thursday, March 28, 2024

Bush tax cut plan helps needy most

The president’s plan is fair to all income taxpayers, sending money back to the people who sent it in. Under the president’s plan, the highest percentage tax cuts go to the lowest income taxpayers and higher-income Americans still pay a larger share of the income tax burden.

Families earning between $30,000 and $40,000 will see their share of total income taxes paid fall from 2.5 percent of total income taxes paid to 1.8 percent.

The share of income taxes paid is reduced for all income groups below $100,000 in income.

The percentage reduction in income tax burden is more than 130 percent for the lowest income group, and falls as income level rises. The reduction for those in the highest income group earning more than $200,000 is 8.7 percent.

Under current law, households earning more than $200,000 a year pay 43 percent of the income tax burden. Under the president’s plan, households earning more than $200,000 a year will bear 46 percent of the income tax burden.

This tax cut package is fair. It returns money to the people who sent it in.

Under the president’s plan, 4 million taxpayers will be taken off the income tax rolls. A four-person family earning $35,000 a year will no longer face any income tax burden. A four-person family earning $45,000 a year will see its income taxes cut in half. And a four-person family earning $75,000 will pay 22 percent less in income taxes.

The typical family of four will get a $1,600 tax cut.

The majority of small businesses are taxed under the individual rates. Eighteen million of those businesses taxed will receive tax relief.

Jason Church
1992 MSU graduate

Discussion

Share and discuss “Bush tax cut plan helps needy most” on social media.