Breaking: House, Senate Conservatives Agree on $70 Billion In New Tax Cuts for the Rich

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House and Senate conservatives just agreed to move forward on another budget-busting tax bill favoring the wealthiest Americans. The latest plan — announced today “” — will spend $70 billion to extend the 15 percent tax rate for capital gains and dividends until 2010. Today’s agreement “paves the way for House approval of the measure . The Senate could clear the bill for Bush’s desk by week’s end.”

According to a study by the , the tax cuts :

The top tenth of 1 percent, whose average income is $5.3 million, would save an average of $82,415. Those in the top group would see their tax bill cut 4.8 percent, while Americans at the center of the income distribution — the middle fifth of taxpayers, who will earn an average of $36,000 this year — could expect a 0.4 percent reduction in their tax bill, or about $20.

Those who make less than $75,000 — which includes about 75 percent of all taxpayers — would save, at most, $110 each. Those making more than $1 million would save, on average, almost $42,000.

Despite administration claims to the contrary, Federal Reserve economists have found these investment tax cuts , and the non-partisan Joint Committee on Taxation has found that any economic benefits of the cuts would “ by the reduction in national savings due to increasing Federal government deficits.”

For full coverage, stay tuned to American Progress’ .

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Published

May 9, 2006 - 6:49pm

Author

randomness