Brain Top Off!

When it comes to the Bush tax cut offer, an extension of tax breaks for wealthy Americans is acquiring lots of press. But there’s something for everybody within the mix. The greater you make the more you conserve is how it works. Economists are praising the offer as a stimulus bundle once thought impossible after the midterm elections. Hopefully if all goes as prepared the Bush tax cuts could keep folks from being forced to take out a payday loan.

Info on the Bush tax cuts package

The federal govt would lose a lot of cash with the Bush tax cut deal. In fact, over the next 2 years about $900 billion would be lost. A good package of that cash will go to individuals who could live very comfortably without it. The benefits will roll into 2011 and will benefit the middle class. Some of the benefits include a tuition tax credit, a federal joblessness extension, a payroll tax holiday and a child tax credit. Ending the Bush tax credits would mean that the middle class taxpayers would be bringing home less to their families each and every month. About $200 less a paycheck would be taken home. Americans in the lower-income would have seen a payroll tax. It would have gone up to 15 percent from the 10 percent it is now.

Rich experiencing tax cuts also

The Bush tax cuts offer is something every person might enjoy. But the benefits are manipulated in the direction of the rich. The payroll tax holiday takes 2 percentage points off the current 6.2 percent taken out of paychecks. Someone making $100,000 would get a tax cut ten times bigger than somebody making $10,000. Census data shows the average U.S. family earns about $52,000 a year. About $1,180 will be saved by the Bush tax cut extension for average homes in 2011. That is 2.3 percent of income being saved. About $7,500 will be saved by those making between $200,000 and $500,000. About 6.2 percent of income could be saved by any person making $1 million or a lot more which is about $129,000.

What to do with the cash

Democrats are not being favored at all with the Bush tax cut deal. It’s all going for Republicans. Tax cuts for the wealthy will cost $120 billion. That is just out of the $900 billion. About $450 billion could be taken for tax breaks Obama suggested. The extensions on the Bush tax cuts would go to the middle class. About $360 billion would go to that. The idea is likes by economists. They think it is brilliant. The news showed estimates for economic growth and employment revised. The Bush tax cut package will help create a ton of jobs which wasn’t expected with Congress ruled by Republicans based on research groups in WA that are liberal.

Citations

CNN Money

money.cnn.com/2010/12/08/news/economy/tax_cuts_middle_lower_income/index.htm

Main Street

mainstreet.com/article/moneyinvesting/news/does-middle-class-need-tax-cuts?page=2

New York Times

nytimes.com/2010/12/08/business/economy/08leonhardt.html

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