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Tax Cut For Whom?

Reported by Eleanor - September 24, 2004 -

Special Report with Jim Angle replacing Brit Hume (Sept. 24, 6:00 p.m.) did a very short spot on the tax cut "for the middle class" that passed yesterday. Those opposing the tax cut said it will contribute to the deficit. Those in favor said it is unfair to end middle class tax cuts. And that's all. What they didn't say is provided below.

This came from misleader.org:

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." 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." The top fifth of earners, however, "will get an average tax cut of $1,317." As a result, the top fifth will receive two-thirds of all benefits.

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

See Administration Distorts Who Benefits from Tax Cut for sources.