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Economic News, Data and Analysis

Tax cut distribution

The Congressional Budget Office released a new study today detailing the impact of recent tax cuts on various income levels. Bottom line – the very, very wealthy made out very, very well.
From the New York Times:

Washington > Campaign 2004 > Report Finds Tax Cuts Heavily Favor the Wealthy” href=”http://www.nytimes.com/2004/08/13/politics/campaign/13tax.html?hp”>The New York Times > Washington > Campaign 2004 > Report Finds Tax Cuts Heavily Favor the Wealthy
Fully one-third of President Bush’s tax cuts in the last three years have gone to people with the top 1 percent of income, who have earned an average of $1.2 million annually, according to a report by the nonpartisan Congressional Budget Office to be published Friday.
The report calculated that households with incomes in that top 1 percent were receiving an average tax cut of $78,460 this year, while households in the middle 20 percent of earnings – averaging about $57,000 a year – were getting an average cut of only $1,090.
The new estimates confirm what independent tax analysts have long said: that Mr. Bush’s tax cuts have been heavily skewed to the very wealthiest taxpayers. Those are also the people, however, who pay a disproportionate share of federal income taxes.

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