Treasury Releases Papers on Anniversary of President's 2003 Tax Relief
Washington, DC--The Treasury Department released today two papers illustrating the benefits to American families and businesses from the tax relief enacted over the last seven years.
The papers were released on the five-year anniversary of President Bush's signing the Jobs and Growth Tax Relief Reconciliation Act of 2003, which lowered rates on capital gains and dividends, helping individuals and businesses save and invest.
In "Topics Related to the President's Tax Relief," Treasury analyzes how the 2001 and 2003 tax relief, along with other tax relief passed over the last several years, has allowed more Americans to keep more money in their pockets. Some of the primary findings in this paper include:
[ul][*]The individual income tax is highly progressive: [*]In 2005, the top 5 percent of taxpayers paid more than one half (59.7 percent) of all individual income taxes, and the top 1 percent paid 39.4 percent; and[*]Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes. In 2005, they paid 96.9 percent of all individual income taxes. [*]In total, the President's tax relief reduces marriage penalties by $22.8 billion in 2008, with 6.9 million fewer couples suffering marriage penalties. [*]About 70 percent (1 million) of the 1.4 million tax returns that benefit from lowering the top two tax brackets from 39.6 percent to 35 percent and from 36 percent to 33 percent are flow-through business owners. [*]The President's tax relief has also reduced the marginal effective tax rate on new investment, which encourages additional investment, capital accumulation, and in the long-term, higher living standards for workers. [/ul]
In "Tax Relief in 2001 through 2011," Treasury analyzes how the President's tax relief benefited Americans both in the aggregate and through several illustrative examples of how the tax relief has benefited certain types of taxpayers. If the President's tax relief is not extended, in 2011:
[ul][*]A four-person, one-earner family with wage income each year of $40,000 in 2007 dollars would see a tax increase of $2,345; [*]A four-person, one-earner family with wage income each year of $80,000 in 2007 dollars would see a tax increase of $2,000; [*]A three-person, one-earner family with wage income each year of $40,000 in 2007 dollars would see a tax increase of $1,655; and[*]A head of household with two children and wage income each year of $30,000 in 2007 dollars would see a tax increase of $1,615. [/ul]
The analysis of the benefit of tax relief on American families and the economy includes tax legislation enacted from 2001 through 2008, notably:
[ul][*]The Economic Growth and Tax Relief Reconciliation Act of 2001,[*]The Jobs and Growth Tax Relief Reconciliation Act of 2003,[*]The Working Families Tax Relief Act of 2004,[*]The American Jobs Creation Act of 2004,[*]The Tax Increase Prevention and Reconciliation Act of 2005, [*]The Pension Protection Act of 2006, and[*]The Economic Stimulus Act of 2008.[/ul]
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
The Treasury Dept. must be lying. Obama says that, by not renewing the Bush tax cuts, he'll only be raising taxes on people earning over $250,000... [/sarcasm]
Tax relief now vs. 2011 are you ready?
