Bush tax cut package favors greater earnings

Protection of the Bush tax cut deal suggested by the Obama administration this week has centers on tax cuts for the wealthy. However there’s something for everybody in the mix. The more you make the more you save is how it works. Ironically, the offer turns out to be a form of govt stimulus derided by Republicans as they prepare to assume greater power in Congress. Hopefully if all goes as planned the Bush tax cuts will keep people from having to take out a pay day loans.

Exactly about the Bush tax cuts offer

The Bush tax cut deal will cost the federal government almost $900 billion dollars over the next two years. Individuals who live comfortable without the additional cash will be acquiring g lots of the cash. But what is left of the middle class stands to gain from such items as a payroll tax holiday, child tax credit, a tuition tax credit and a federal joblessness extension carrying through 2011. About $200 less a payday starting next month would be going home to average middle class taxpayers if the Bush taxes ended. Lower-income Americans would have seen their payroll tax rate rise from 10 percent to 15 percent.

More tax cuts for the rich

There’s something for every person within the Bush tax cut deal. The wealthy get much of the benefits though. The payroll tax holiday takes 2 percentage points off the current 6.2 percent taken out of paychecks. There will be ten times a lot more of a tax cut for someone making $100,000 a year than someone making $10,000 a year will get. About $52,000 is earned by all U.S. families on average according to census data. A Bush tax cut extension will conserve these households $1,180 on average in 2011–about 2.3 percent of income. Families earning from $200,000 to $500,000 would conserve about $7,500. About 6.2 percent of income can be saved by anybody making $1 million or a lot more which is about $129,000.

The money is invested too

Democrats aren't being favored at all with the Bush tax cut offer. It’s all going for Republicans. Of its $900 billion cost, just $120 billion should go to tax cuts for the wealthy. Tax breaks suggested by the Obama administration take $450 billion from the total. The middle class would get about $360 billion for the Bush tax cut extensions. The idea is likes by economists. They think it’s brilliant. The news showed estimates for economic growth and employment revised. The Bush tax cut package will help create a ton of jobs which wasn't expected with Congress ruled by Republicans based on research groups in Washington that are liberal.

Details from

CNN Money

money.cnn.com/2010/12/08/news/economy/tax_cuts_middle_lower_income/index.htm

Main Street

mainstreet.com/article/moneyinvesting/news/does-middle-class-need-tax-cuts?page=2

New York Times

nytimes.com/2010/12/08/business/economy/08leonhardt.html