Death and Taxes

Death and Taxes

Those inveterate whiners in the White House are now complaining that the president’s poll numbers should be much higher given the strong economic indicators at the moment. Their problem may lie in the fact that average Americans–the vast majority of the population–aren’t the ones enjoying the benefits of Bush’s trickle down tax policies.

The New York Times recently analyzed IRS data on the Bush tax cuts on dividends and capital gains. Here is the money quote: “Taxpayers, whose average income was $26 million, paid about the same share of their income in income taxes as those making $200,000 to $500,000because of the lowered rates on investment income.”

To find an individual example, one needs look no further than the Cheneys. In 2005, Dick and Lynne received a huge tax rebate on their $8.8 million income, largely because most of that money was the result of exercising Halliburton stock options.

Facebook
Twitter
Email
Flipboard
Pocket

Those inveterate whiners in the White House are now complaining that the president’s poll numbers should be much higher given the strong economic indicators at the moment. Their problem may lie in the fact that average Americans–the vast majority of the population–aren’t the ones enjoying the benefits of Bush’s trickle down tax policies.

The New York Times recently analyzed IRS data on the Bush tax cuts on dividends and capital gains. Here is the money quote: “Taxpayers, whose average income was $26 million, paid about the same share of their income in income taxes as those making $200,000 to $500,000because of the lowered rates on investment income.”

To find an individual example, one needs look no further than the Cheneys. In 2005, Dick and Lynne received a huge tax rebate on their $8.8 million income, largely because most of that money was the result of exercising Halliburton stock options.

Talk about death and taxes.

But not to worry, it gets worse.

To cover the tax breaks for investment, Congress recently refused to extend the patch on the alternative minimum tax. The AMT patch is complicated but what it means is that “one in four families with children–up from one in 22 last year–will owe up to $3,640 in additional federal income tax come next April.”

Happy Tax Season.


Nation Event Note

The Nation is visiting Yale University on Wednesday, April 26, 2006. Click here for details on a free public event, sponsored by the Roosevelt Institute, featuring Nation editor and publisher Katrina vanden Heuvel.

Dear reader,

I hope you enjoyed the article you just read. It’s just one of the many deeply reported and boundary-pushing stories we publish every day at The Nation. In a time of continued erosion of our fundamental rights and urgent global struggles for peace, independent journalism is now more vital than ever.

As a Nation reader, you are likely an engaged progressive who is passionate about bold ideas. I know I can count on you to help sustain our mission-driven journalism.

This month, we’re kicking off an ambitious Summer Fundraising Campaign with the goal of raising $15,000. With your support, we can continue to produce the hard-hitting journalism you rely on to cut through the noise of conservative, corporate media. Please, donate today.

A better world is out there—and we need your support to reach it.

Onwards,

Katrina vanden Heuvel
Editorial Director and Publisher, The Nation

Ad Policy
x