Big Dogs Weblog

Who Do Tax Cuts Help?

by Big Dog on Mar 25, 2007 at 23:31 Uncategorized

We have all heard the mindless prattle that comes from the left about Bush’s tax cuts. They only help the rich and are of no benefit to the poor. The Liberals continually tell us how the lower income families are shouldering the burden because of evil rich Republicans. There is a new report out from the tax foundation that looks not only at taxes paid in but the benefits received. The report indicates:

Overall, we find that America’s lowest-earning one-fifth of households received roughly $8.21 in government spending for each dollar of taxes paid in 2004. Households with middle-incomes received $1.30 per tax dollar, and America’s highest-earning households received $0.41. Government spending targeted at the lowest-earning 60 percent of U.S. households is larger than what they paid in federal, state and local taxes. In 2004, between $1.03 trillion and $1.53 trillion was redistributed downward from the two highest income quintiles to the three lowest income quintiles through government taxes and spending policy. The Tax Foundation

Look at what it shows. The lowest earners get 20 times more in government spending than the highest earners and those in the lowest 60% received more than they paid in federal, state, and local taxes. Then, the real kicker is that 1.03 to 1.53 TRILLION dollars was redistributed from the two highest income quintiles to the lowest three. This means the rich had over a TRILLION dollars taken from them to pay for 60% of the US households.

So can some bleeding heart liberal please tell me how the tax cuts are only helping rich people? Can one of these geniuses please tell me how the burden is on the middle and lower classes? Could they just spell out for me how it is that reducing the tax rate helps the people who are footing the lion’s share of the bills? The fact is those who pay the least get the most and those who pay the most get the least. I personally don’t want anything from the government and would prefer that they keep their hands out of my pockets.

Please remember this when they talk about how easy the rich people have it.

Tags: Commentary