Don’t believe Obama’s “Bush killed the working people with his tax cuts for the rich” hype. Don’t believe it for a second.
Congressional Budget Office (CBO) data show that the total effective federal tax rate of the middle fifth of households declined after 2001 to its lowest levels since at least 1979, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today. Under the 2001 and 2003 tax relief legislation, the income tax as a share of income for the middle fifth also has fallen to its lowest levels in decades.
The middle fifth of households has an income between $39,100 and $ 62,000. In fact, since 2004, the lower limit has gone up by more than $4,000 on the lower end and slightly less than $7,000 on the top end. This group is very solidly in the “working class” category and it’s gotten larger and more prosperous since even 2004. It’s made up mostly of family, married couple households who own their own homes.
In other words, it’s where you will find Joe the Plumbers along with Joe the Electrician, Joe the Mechanic, Joe the Police Dispatcher, and Joe the Sick and Tired of Being Told How Horrible His Life is By a Guy Who’s Never Done a Day of Honest Work in His Whole Adult Life.
And their tax bill is very low thanks to the Bush tax cuts that Barack Obama wants to end the very second he hits the Oval Office.
The statement, with accompanying chart is here (PDF).
Category: The Economy and Your Money