The president last night called on Congress to extend his tax cuts for the wealthiest Americans. The effects of large tax cuts for top earners are clear:
- If the Administration does act, the cuts will end up draining more than $4 trillion in revenue over the next decade. In 2013 alone, 11 years after the recession and 9/11, the tax cuts will be costing us more than $600 billion, including interest. If the tax cuts become permanent only those in the top 1% will receive tax cuts of $66,208, and will enjoy 34.6 percent of the tax cuts while the bottom 80 percent gets only 25 percent.
- Like many Americans, most small business owners felt little effect from Bush's 2003 tax cut. 82 percent of tax filers with small business income received less than $2000 in cuts. 55 percent got less than $500, 25 percent got no tax cut at all. In fact, less than 5 percent of those with small business income fall into the top two income brackets and only .2% of small business filers received the average $50,000 from the Bush tax cut.
Despite three years and three tax cuts, the administration has been ineffective at creating jobs and stimulating real economic recovery. Despite the president's rhetoric on tax cuts, most Americans have not felt the trickle down effects of massive tax cuts for the wealthy. Tax cuts do little to address the continuing issue of job creation today and will likely create greater problems for workers in the future by draining job training and education funds and slowing economic growth.
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