Setting the Record Straight: President Bush's Tax Cuts Reduce Burden on the Middle ClassKerry Claim: President Bush's tax breaks have forced middle class families to pay a bigger share of America’s tax burden.
The Truth: Today’s Democrat-requested report from the Congressional Budget Office confirms what the Treasury Department reported earlier this year and what the Joint Committee on Taxation reported in 2001: All income taxpayers benefit from President Bush's tax cuts. The reality is that President Bush's tax cuts have made the income tax more progressive.
- Top One Percent of Earners: The percentage of income taxes paid by the top one percent of earners will be higher this year under the tax cuts (32.3 percent) than without the tax cuts (31.6 percent).
- Middle Class: Under President Bush's tax cuts, the middle 20 percent of earners will pay just 5.4 percent of all income taxes this year. Without the tax cuts they would pay a higher 6.4 percent of all income taxes.
- Bottom 80 Percent of Earners: Under President Bush's tax cuts, the bottom 80 percent of earners will pay just 17.8 percent of all income taxes this year. Without the tax cuts they would pay a higher 21.6 percent of all income taxes.
John Kerry's attack is misleading in light of the fact that his budget numbers don’t add up, and he'll raise taxes to pay for his spending. Kerry has voted 98 times for higher taxes totaling more than $2.3 trillion during his 19 year Senate career. Kerry has made 133 campaign promises. According to a recent American Enterprise Institute study, Kerry's plans for new spending add up to between $2 trillion and $2.1 trillion over the next ten years. Kerry has even referred to his 1993 vote for the largest tax increase in U.S. history as an economic blueprint for his presidency.
| Share of Total Federal Tax Liabilities | ||
| Income Category | 2001 | 2014 |
| Lowest Quintile | 1.1 | 1.5 |
| Second Quintile | 5.0 | 5.6 |
| Middle Quintile | 10.0 | 10.7 |
| Fourth Quintile | 18.5 | 19.2 |
| Highest Quintile | 65.3 | 62.8 |
| Top 10 Percent | 50.0 | 47.4 |
| Top 5 Percent | 38.5 | 36.1 |
| Top 1 Percent | 22.7 | 20.7 |
UPDATE: Oops. In the comments, Max Sawicky points out that I shouldn't have reproduced the CBO table using 2014, because it "reflects the reversion to old tax law." (He suggests that I could and should have used 2004 in order to make the same point, and he's absolutely right.) Sorry for the early morning carelessness, and, as always, I'll try to do better next time.
UPDATE POSTSCRIPT: And if you haven't read Max's posts on this subject, you'll find them here, here, and here.
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