[Mb-civic] Administration Distorts Who Benefits from Tax Cut

[The Daily Mislead]

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THE DAILY MIS-LEAD
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ADMINISTRATION DISTORTS WHO BENEFITS FROM TAX CUT

The administration and most of the mainstream press are billing the tax package passed by Congress yesterday as a "middle class tax-cut."[1] The reality is that the new law is more of the same: tax cuts that benefit the rich and, in many cases, exclude the neediest families. 

An analysis from the Urban Institute-Brookings Tax Policy Center shows that the middle 20 percent of earners "will receive an average tax cut of $162 in 2005 from this legislation."[2] The top fifth of earners, however, "will get an average tax cut of $1,317."[3] As a result, the top fifth will receive two-thirds of all benefits.[4] 

The bill excluded a provision that would have extended the child tax credit to four million low-income families who currently don't qualify.[5] Extending eligibility to these families would have cost $4 billion.[6] Meanwhile, conservatives included $12 billion in tax cuts for corporations.[7] 

Sources: 

1. "Congress Extends Middle-Class Tax Breaks," The Kansas City Star, 9/24/04, http://daily.misleader.org/ctt.asp?u=1136375&l=58032. 
2. "New 'Middle-Class' Tax-Cut Bill Represents Cynical Policymaking," Center for Budget and Policy Priorities, 9/23/04, http://daily.misleader.org/ctt.asp?u=1136375&l=58033. 
3. Ibid, http://daily.misleader.org/ctt.asp?u=1136375&l=58033. 
4. Ibid, http://daily.misleader.org/ctt.asp?u=1136375&l=58033. 
5. "Lawmakers Can't Resist Voting to Extend Bush's Tax Cuts," Los Angeles Times, 9/24/04, http://daily.misleader.org/ctt.asp?u=1136375&l=58034. 
6. Ibid., http://daily.misleader.org/ctt.asp?u=1136375&l=58034 
7. Ibid., http://daily.misleader.org/ctt.asp?u=1136375&l=58034 

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