Wednesday, June 21, 2006
Tax Relief for Whom?
In May, the Republican controlled Congress passed $70 billion in tax cuts over the next five years, despite the fact that the deficit keeps getting more and more out of control, and despite the fact that vital domestic programs (like education, health care, etc.) are struggling for funds. But hey, at least the ordinary working man will get to keep more of his own money, right? Well... not exactly. Here's the breakdown of the average tax savings per household based on annual income. Guess who benefits...

Income ........................................ Avg Tax Savings
$10,000-20,000 .............................................. $2
$20,000-30,000 .............................................. $9
$30,000-40,000 ............................................. $16
$40,000-50,000 ............................................. $46
$50,000-75,000 ............................................ $110
$75,000-100,000 ......................................... $403
$100,000-200,000 ................................... $1,388
$200,000-500,000 .................................. $4,499
$500,000-1 million ................................... $5,562
Over 1 million ........................................... $41,977


Gee, I wonder what I'll do with my extra sixteen bucks this year...

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posted by Mike Clawson at 10:39 PM | Permalink |


5 Comments:


At 6/22/2006 02:05:00 AM, Blogger rick

Mike - while I understand your frustration, I'm sure you also understand the tax issue is much more complicated than this analysis.

I enjoy your blog because of the insight you provide but this one fell a little short.

Sorry my first comment was negative but I've been quietly enjoying your blog for awhile now.

 

At 6/22/2006 10:41:00 AM, Blogger Mike Clawson

Hey Rick, welcome.

This data came from the Senate Finance Committee, so however complicated the issue is I have to believe that these numbers are still fairly accurate.

Bottom line is that I don't believe that tax cuts, especially ones that primarily benefit the wealthy, are a good idea for a government that is already losing billions of dollars a year. I worry more about the people who will suffer as a result of cut programs than I do about saving a few bucks of my own money. I'll gladly donate $16 in order to pay teachers better salaries or to make sure retirees can still get their medications.

 

At 6/22/2006 09:54:00 PM, Blogger Brian

My wife's a teacher. You can mail us the $16. I think you have our address. Thanks in advance. :)

 

At 6/22/2006 11:42:00 PM, Blogger Mike Clawson

Consider it done! (Actually, I don't know that I have a home address for you. Can I just send it to the church?) :)

 

At 6/24/2006 01:46:00 AM, Blogger rick

Not questioning the accuracy - just all of the variables that lead to it. I also agree with your frustration - just questioning the focus of it since I perceive the issue is quite complex.

That's my frustration, I think we are all to blame and I have no solution. Every time I think about this kind of stuff I get a headache.

These days I'm trying to focus my headaches on spiritual matters.

I'll leave politics to the dishonest.

;)

keep up the great blogging.

 

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