Friday, September 24, 2004

The tax bill that cleared Congress yesterday was not a "middle class tax cut."

Why you're right:

1. The bill mostly benefits the rich. Two-thirds of the benefits in the bill went to the top 1/5 of all earners. (CPBB)

2. The bill gives away billions to corporations. The bill included $12 billion in corporate tax breaks – including provisions benefiting Caribbean distillers. (LA Times, USA Today)

3. The middle class could end up worse off. Middle class families receive an average benefit of just $169. This could be more than off-set by program cuts or future tax increases that will inevitably be required to pay down the added debt created by the bill. (CBPP)

Why they're wrong:

The bill does provide some modest benefits to the middle class. But the title "middle class tax cut" implies that the middle class is the primary beneficiaries of the bill. In fact, this bill is more of the same – major tax cuts for the wealthy and corporate interests with the middle class left with the scraps.