August 13, 2004
Big Media is all over a newly-released Congressional Budget Office study, and the spin is - of course - that with his tax cuts, Bush has been sucking the toes of billionaires and stiffing Joe Lunchbucket.
I'd like to say they're cherry picking a few damaging facts, but I don't want to give cherry pickers a bad name. This stuff is practically criminal.
The New York Times article today - which of course sets the tone for Reuters, CNN and dozens more - pays no heed to the main finding of the study: that under current law, the highest-earning American households are paying, and will continue to pay, a dramatically larger share of federal income taxes than the lower-earning quintiles.
The Times instead comes up with these laughable criticisms, none daring to address which income-sectors of households (there are five such groups in the study) are paying what proportion of federal income taxes. Again, that was the central point of the study. The Times is reduced to bemoaning that:
*One-third of tax cuts benefit the richest 1 percent of households;
*the richest 1 percent of households got a much larger tax breaks than those in the middle 20 percent;
*Two-thirds of the benefits from the '01 and '03 tax cuts went to households in the top-earning quintile (top 20 percent).
Which leads to the Times' assessment that "the calculations...confirm the long-held view by independent tax analysts that the tax cuts, enacted in 2001 and 2003, have heavily favored the wealthiest tax payers."
At least the paper also notes in passing that the wealthiest taxpayers "pay a disproportionate share of federal income taxes." So why not include some numbers (see below). A hint is where the Times story is placed, in today's online version: the "campaign" section.
UPDATE: As you'll see in this post's comment section, U.S. Census data indicate that the share of income earned by higher-earning households is significantly exceeded by their relative share of federal income tax revenues paid.
It's great the CBO study is a "campaign" issue as the Times indicates. But the paper's "reporters" belong in the stands, reporting the thrust of the study's findings, not on the playing field peddling marginalia as damning truth.
Editorialists and opinion writers get more latitude, but also have a responsibility to report on the central thrust of the study (relative income tax burden after Bush's tax cuts) and explain why, if they believe so, it is somehow less important than the statistical effluvia being extracted from today's new CBO study to bash Bush.
By failing to include study data on relative tax burden by household income (which we relate below, as summarized by staff at the Joint Economic Committee), the Times reveals once again, a strident anti-Bush bias.
Which suits Reuters just fine of course, as it parrots The Times' money quote, some of the data, and throws in more trivia, like this:
*a middle-earning quintile of households actually saw their taxes increase this year.
Ooomph! I'd be just about ready to chomp the long-neck off my bottle of Rolling Rock (Latrobe, PA) right now, if I didn't know better. So, please - to another view.
The CBO Study is titled, "Effective Federal Tax Rates Under Current Law, 2001 to 2014." Here's the link (pdf). And here's what policy analyst Sean Davis of the (House-Senate) Joint Economic Committee says about its findings.
"A new Congressional Budget Office (CBO) report produced at the request of Congressional Democrats confirms that tax cuts since 2001 increased the share of federal income taxes paid by the highest earners while decreasing the tax share of lower- and middle-income groups. The CBO analysis...shows that the income tax remains highly progressive, with the top 5 percent of earners paying more than half of all federal income taxes.
As a result of the tax cuts since 2001, all taxpayers face lower effective federal income tax rates than they would have without the tax cuts.
While many characterize the CBO report as evidence that the tax cuts shifted the burden of taxation to the middle class, CBO data show precisely the opposite effect. The tax cuts actually made the tax system more progressive. The highest 20 percent of earners now pay a larger share of federal income taxes than they would have without the tax cuts, while the share of income taxes paid by all other income groups fell.
The overwhelming majority of federal income taxes are paid by the very highest income earners. The top 1% of income earners pays 31.6% of all income taxes, the top 5% pays 51.4%, the top 10% pays 63.5%, and the top 20% of income earners pays 78.4% of all federal income taxes. The bottom four-fifths of income earners pay just over one-fifth of all federal income taxes.
Some analysts cite total effective federal tax rates, as opposed to effective income tax rates, as the best measure of the effects of the tax cuts across income groups. This method can be misleading because it measures the burden of payroll taxes without accounting for the highly progressive Social Security and Medicare benefits to which payroll taxes are linked."
Maybe Bigfoot Media types should call Mr. Davis, and put the real story in the Sunday news, not Saturday's. His phone number is 202-224-5334.
Posted by Matt Rosenberg at August 13, 2004 08:19 AM
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DHanson, you wanted to know what share of total U.S. income of top earners made, in order to then fairly compare that to what percentage of the federal income tax burden they bear.
Here are some figures and a link with same (which you may have to cut and paste), courtesy of a poster at the blog Red State (http://www.redstate.org) where they are also talking about the CBO study today.
Good post. The Seattle Times headlines the Washington Post's story on this today with "Middle class feeling pinch from tax cuts, study says." If the middle class (however that's defined) has a larger share of total federal income taxes paid than before, because the highest-income taxpayers, who pay a disproportionately large share of total taxes, naturally benefit most from cuts in larger rates, but the middle class still pays less taxes after the tax cuts than before, how does that constitute "the middle class feeling a pinch." If somebody gets a bigger tax cut than me, in percentage terms, but I'm still gettng a tax cut, I am in no possible sense "pinched." How to strain to echo Kerry campaign themes, Times.
Sorry, I meant to say "marginal rates" in my post above, not "larger rates."
Thank you, Matt R. for the links to percentages of taxable income. It is a lot stronger argument (to me, at least), to say that the people making 47.3 percent of U.S. income are paying 78.4 percent of taxes, and that such a burden is unfair. The two numbers can compared side-by-side far more effectively. People who want to change the tax system or defend cuts for the wealthiest taxpayers may reach more people with that direct comparison.
Cornflux: While it is true I may never be satisfied, I am not necessarily against tax cuts for any particular income level. However, I want to see the type of specific figures of income versus amount taxed.
Figures of number of taxpayers versus amount taxed are useless. They do nothing to show that a group is overtaxed. The more specific figures of income vs tax that I've since been supplied with allow a logical argument for tax cuts.
I was not necessarily objecting to tax cuts. I was objecting to faulty methodology in defending tax cuts.
Matt is surely right in pointing out the biased way in which the media report on the distribution of the tax burden in America.
I fear, however, that even a more balanced presentation would have little effect on tax policy. This is because there is a near perfect correspondence between our concept of tax fairness and our self-interest. (Oh, surprise!) Consequently, as the the size of the population benefiting from governmental largesse grows, so will the self-evident virtue of soaking the rich. Depressingly, the growth of this dependent class will also erode the most important extra-constitutional constraint that has tended to limit tax increases--namely, the hope (if not expectation) of someday becoming wealthy oneself.
No doubt worse is yet to come, for it is possible to tax wealth as well as income--an idea that has not escaped Ralph Nader or most academicians outside of the Economics Department. After all, if we can reasonably take take half of everything a recently deceased rich person owns, why wait until death? The attractiveness of this notion will no doubt improve as the government contemplates closing the gap between its revenues and unfunded liabilities by either defaulting on its bonds or creating Weimar-scale inflation.
What is the upper limit of "fair" taxes for the rich? Probably at the point where any further increase in taxation will so deaden the incentive for activity that even the fortunes of the winning political coaltion will begin to deteriorate. Or perhaps at the point where most of the "rich" start shoveling their dough out of the country. So somewhere between the desire to trap the goose, and the desire not to kill the goose, we shall find respite from the tax man.
Dude(dhanson) - that's an interesting argument. Ask John And Theresa Heinz Kerr what percent of income tac they paid.!
Hey Guys,
The CBO study found that the wealthiest 20 percent, whose incomes averaged $182,700 in 2001, saw their share of federal taxes drop from 64.4 percent of total tax payments in 2001 to 63.5 percent this year. The top 1 percent, earning $1.1 million, saw their share fall to 20.1 percent of the total, from 22.2 percent.
Over that same period, taxpayers with incomes from around $51,500 to around $75,600 saw their share of federal tax payments increase. Households earning around $75,600 saw their tax burden jump the most, from 18.7 percent of all taxes to 19.5 percent.
Middle class still in roundabouts Mr Kerry thinks he has the answer.....here is what he suggests
John Kerry and John Edwards' plan to build a stronger economy will:
Create Good-Paying Jobs
As president, John Kerry will cut taxes for businesses that create jobs here in America instead of moving them overseas. John Kerry and John Edwards will also stand up for workers by enforcing our trade agreements.
Cut Middle-Class Taxes To Raise Middle-Class Incomes
When John Kerry is president, middle-class taxes will go down. Ninety-eight percent of all Americans and 99 percent of American businesses will get a tax cut under the Kerry-Edwards plan.
Make Washington Live Within A Budget
John Kerry will cut the deficit in half during his first four years in office. He will end corporate welfare as we know it, roll back the Bush tax cuts for the wealthiest Americans, and impose a real cap to keep spending in check. And when John Kerry puts forward a new idea, he'll tell you how he's going to pay for it.
Invest In The Jobs Of Tomorrow
Today, businesses are harnessing new technology to manufacture energy-efficient cars, high-grade steel, advanced plastics and other new products. And this requires a bigger, skilled labor force to make them. John Kerry and John Edwards believe we should invest in these jobs and invest in the people who will fill them.
Do we need that anyway or he is just hammering the cotton ball.
Nitish Tewary
Financial Analyst
Ok Nits you won u got it all right..
I take it that "Financial Analyst" has given us the Kerry campaign talking points. But OK, I'll bite anyway.
If it is important for American taxpayers to subsidize workers in domestic jobs that can now be done more cheaply and efficiently abroad, why should we try to accomplish this indirectly by creating tax incentives for corporations, which may or may not get the job done? Why not simply transfer money directly from the Treasury to the people performing the work that no one needs any more? This would allow corporations to pursue the goal of economic efficiency by eliminating jobs that are no longer necessary, while leaving the "beneficiaries" free to stop doing what they are no longer needed to do and start thinking about work that they might be needed to do.
Just think of it as another farm program.
Yes Tom, Agreed to what you say. But I gotcha question here.... if jobs are eliminated then there will be an extra burden on the government to provide social security to the concerned fellow Americans. This means we will be paying more taxes to fill in the trasury and moreover siphoning money means some thing rediculous for all of us. Moreover the politico-economic agenda of decrement of unemployment will be under threat. Yes what you say is possible but if you look at individual cases then the time factor (i.e. time for those guys to start or get new jobs)of all those job eliminated guys is still under uncertainty.
We all need work .....highly productive ones.....isn't it Tom!!!!!!
Nitish Tewary
Financial Analyst
Yes I fully agree with Nitish, what he says is perfectly alright. Nitish we more points on taxation, to make matters clear. More of your comments are needed.............
Samuelson
Sam you r causing me a heartburn......anyway here is what out to be preseident Kerry says on taxation:
End tax breaks that encourage companies to move jobs overseas by eliminating the
ability of companies to defer paying U.S. taxes on foreign income.
Close abusive international tax loopholes.
Cut the corporate tax rate by 5 percent.
JUMPSTART JOB GROWTH WITH A NEW JOBS TAX CREDIT AND A ONE-YEAR TAX HOLIDAY TO ENCOURAGE COMPANIES TO REPATRIATE PROFITS
Restart job growth today with an expanded New Jobs Tax Credit that covers new jobs in
manufacturing, other industries affected by outsourcing and small businesses.
Increase investment to jumpstart the economy by encouraging American companies to
bring their foreign profits back to America as part of a comprehensive tax reform that
ends incentives to keep future profits overseas.
Burrrr there is more of a big atom bomb here - The Kerry-Edwards International Tax Reform Proposal.
Check it out Samuelson.....we neeed another Hero.
Nitish Tewary
Here is a list where Mr Kerry thinks Mr George W Bush has failed, check this out guys:
1.6 million private-sector jobs lost under George Bush
7 million jobs short of George Bushs prediction.
Jobs are shifting to lower-paying industries paying $8,848 less
A record $490 billion trade deficit in 2003
Inflation-adjusted exports down under Bush, first president on record to oversee a decline in exports.
Business investment down under Bush, first president on record to oversee a decline in investment.
Household income has declined $1,535 under President Bush
5.2 million more Americans without health insurance under President Bush bringing the total uninsured to 45 million, the highest number on record
4.3 million more people in poverty under President Bush, bringing the total to 36 million
Family health premiums are up 64 percent the fastest increase on record
Bush Put Tax Cuts for the Wealthy Ahead of Jobs
Turned record surpluses into record deficits and is now proposing more than $3 trillion in additional deficit increases
Bush fiscal policy has been especially ineffective as a stimulative measure
Bush Puts the Interests of Outsourcing Companies Ahead of Americas Workers
George Bushs administration celebrates outsourcing as a key to economic success
George Bush has failed to enforce our trade agreements and trade laws
George Bush wants to expand tax breaks that encourage companies that outsource jobs
George Bush Puts Drug Companies, HMOs and Energy Companies Ahead of the Middle Class Increasing profits for HMOs and drug companies while families foot the bill
Record profits for big oil companies while consumers are gouged at the pump
I bet no one can achieve 100% success rate, now next time if you dial 800-SAVEMYECONOMY don't expect the phone to be picked.....analysts and economists are on a tax holiday....eating free lunch.
Nitish Tewary
Great going economist Nitish u made everyone silent here.....u know guys are still thinking what to reply you. Huh
By the way whom you support Bush or Kerry??????
Whom will you vote for????
Whose economic policy is better.....what do you say????
Mark
Oh no Mark you made me at the top without any reason. Guys are still thinking whose economic policy was, is and will be the best.
..........and so am I thinking....I don't support anyone and I am still sitting here to watch Bush JGTRRA 2003 sunsets and Kerry's sunrise plans.
Nitish Tewary
The Legacy of George W Bush for Americans:
Who benefits under the President's plan?
The Jobs and Growth Tax Relief Reconciliation Act of 2003 will deliver substantial tax relief to 91 million American taxpayers. Middle-income families will receive additional relief from accelerated reduction of the marriage penalty, a faster increase in the child tax credit, and immediate implementation of the new, lower 10 percent tax bracket.
Everyone who invests in the stock market and receives dividend income-especially seniors-will benefit from dividend tax relief. Half of all dividend income goes to America's seniors, who often rely on those checks for a steady source of retirement income.
Every small business owner who purchases equipment to grow and expand will get assistance through an increase in the expensing limits from $25,000 to $100,000. Unemployed workers received an additional 13 week extension of their federal unemployment benefits, allowing them the support they need while looking to rejoin the workforce.
The Jobs and Growth Act builds on the success of the President's 2001 tax cut. The President recognized that the time to deliver this relief is now - when it can do the most good for families, businesses, and the economy - not years from now.
Under the jobs and growth act, 91 million taxpayers will receive, on average, a tax cut of $1,126 in 2003.
68 million women will see their taxes decline, on average, by $1,338.
34 million families with children will benefit from an average tax cut of $1,549.
23 million small business owners will receive tax cuts averaging $2,209.
12 million elderly taxpayers will receive an average tax cut of $1,401.
6 million single women with children will receive an average tax cut of $558.
3 million individuals and families will have their income tax liability completely eliminated by the Act.
Helping American Families
The President's plan helps working Americans by focusing tax relief directly at moderate-income families and those with children. The plan:
Accelerates marriage penalty relief by increasing the standard deduction and expanding the 15-percent tax bracket for couples in 2003. An estimated 45 million married couples will benefit from this provision;
Raises the child tax credit from $600 to $1,000 per child this year, instead of in the year 2010. An estimated 34 million families with children will benefit from this provision; and
Moves several million working Americans into the lower 10-percent tax bracket immediately, allowing them to keep more of their income.
For example, a married couple with two children and income of $40,000 will see their taxes decline under the President's jobs and growth law by $1,133 (from $1,178 to $45) in 2003, a decline of 96 percent.
The President's Plan to Strengthen Retirement Security
President Bush believes that we need to explore new ways to ensure that Social Security remains strong and financially secure for America's children and grandchildren. The President formed a bipartisan Presidential Commission to review Social Security and recommend reforms to put the system on sound financial ground. He has repeatedly stressed the need for modernization of the Social Security System. President Bush has also proposed solutions to strengthen pension plans and enhance retirement security for all Americans.
The President's plan to strengthen retirement security includes:
Creating a Society of Stakeholders: President Bush supports the creation of Individual Development Accounts, providing savings matches for low-income Americans to accounts that would grow tax-free. The President's Social Security framework would also give all wage earners the opportunity to invest in financial assets, an opportunity that only half of Americans can now afford.
Expanding Ownership of Retirement Assets: The tax relief legislation signed into law by the President in 2001 provided almost $50 billion dollars of tax relief over the next ten years to strengthen retirement security.
Ensuring Freedom of Choice: The President's proposal would ensure that workers who have participated in 401(k) plans for three years are given the freedom to choose where to invest their retirement savings. The President has also proposed that choice be a feature of Social Security itself, allowing individuals to voluntarily invest a portion of their Social Security taxes in personal retirement accounts.
Minimizing Risk through Diversification: The President's proposals would ensure that workers can sell company stock and diversify into other investment options, minimizing their risk.
Strengthening Women's Retirement Security: The President signed into law legislation that would allow for "catch up" contributions to retirement plans, helping millions of American women who took time out from the work force to care for dependent family members. The President's Social Security Commission also made a number of recommendations to vastly improve the treatment of women through Social Security, including the creation of property rights in a personal account for every woman who experiences a divorce, expanded benefits for widows, and new "anti-poverty" benefit guarantees that would benefit women.
Helping Future Generations Achieve the American Dream: The President has proposed extending Social Security to include inheritable assets. This provision would assist communities where life expectancies are unfortunately shorter than national averages, including African American households.
Spurring National Saving and Economic Growth: Tax relief legislation signed into law by the President will accelerate economic growth by expanding national saving. The President's Commission to Strengthen Social Security has found that the President's Social Security initiative would "lead to increased national saving" in a way that is necessary to foster long-term economic growth.
Encourage Job-Creating Investment in America's Economy
The new jobs and growth law encourages individuals and businesses to invest in America's economy. Reduction in Individual Tax Rates on Dividends and Capital Gains
Roughly 35 million American households receive dividend income that is taxable and will directly benefit under the President's plan. More than half of these dividends go to America's seniors, many of whom rely on these checks for a steady source of income in their retirement.
Almost half of all savings from the dividend tax cut under the President's plan would go to taxpayers 65 and older.
The new law will reduce dividend and capital gains taxes for millions of stockholders -pumping billions into the economy this year alone. Twenty-six million taxpayers with income from dividends and capital gains will receive an average tax cut of $798.
Increase Incentives for Small Businesses to Grow
Small businesses create the majority of new jobs and account for half the output of the economy. Their vitality is critical to America's economic health and the President's plan provides important incentives for their economic growth.
Current tax laws permit small business owners to write off as expenses up to $25,000 worth of equipment purchases. The President's plan will increase that limit to $100,000 and index it to inflation - encouraging them to buy the technology, machinery, and other equipment they need to expand.
If small business owners invest more than $100,000, they qualify for a 50 percent bonus depreciation that further reduces the cost of investment - encouraging investment that grows businesses and creates jobs.
Turning Recovery into Prosperity
The President's jobs and growth law will provide $109 billion in tax relief this year alone. It will spur real overall economic growth, yet it is disciplined and tailored to address specific challenges.
The American economy is strong, but it must be stronger. The President's plan is a focused effort designed to remove the obstacles standing in the way of faster growth and greater progress.
President Bush will not be satisfied until every American who wants a job can find one; until every business has a chance to grow; and until we turn our economic recovery into lasting prosperity that reaches every corner of America.
Any comments what have we achieved ????? Quiet a lot!!!!! Check it out.
Nitish Tewary
The Legacy of George W Bush for Americans:
Who benefits under the President's plan?
The Jobs and Growth Tax Relief Reconciliation Act of 2003 will deliver substantial tax relief to 91 million American taxpayers. Middle-income families will receive additional relief from accelerated reduction of the marriage penalty, a faster increase in the child tax credit, and immediate implementation of the new, lower 10 percent tax bracket.
Everyone who invests in the stock market and receives dividend income-especially seniors-will benefit from dividend tax relief. Half of all dividend income goes to America's seniors, who often rely on those checks for a steady source of retirement income.
Every small business owner who purchases equipment to grow and expand will get assistance through an increase in the expensing limits from $25,000 to $100,000. Unemployed workers received an additional 13 week extension of their federal unemployment benefits, allowing them the support they need while looking to rejoin the workforce.
The Jobs and Growth Act builds on the success of the President's 2001 tax cut. The President recognized that the time to deliver this relief is now - when it can do the most good for families, businesses, and the economy - not years from now.
Under the jobs and growth act, 91 million taxpayers will receive, on average, a tax cut of $1,126 in 2003.
68 million women will see their taxes decline, on average, by $1,338.
34 million families with children will benefit from an average tax cut of $1,549.
23 million small business owners will receive tax cuts averaging $2,209.
12 million elderly taxpayers will receive an average tax cut of $1,401.
6 million single women with children will receive an average tax cut of $558.
3 million individuals and families will have their income tax liability completely eliminated by the Act.
Helping American Families
The President's plan helps working Americans by focusing tax relief directly at moderate-income families and those with children. The plan:
Accelerates marriage penalty relief by increasing the standard deduction and expanding the 15-percent tax bracket for couples in 2003. An estimated 45 million married couples will benefit from this provision;
Raises the child tax credit from $600 to $1,000 per child this year, instead of in the year 2010. An estimated 34 million families with children will benefit from this provision; and
Moves several million working Americans into the lower 10-percent tax bracket immediately, allowing them to keep more of their income.
For example, a married couple with two children and income of $40,000 will see their taxes decline under the President's jobs and growth law by $1,133 (from $1,178 to $45) in 2003, a decline of 96 percent.
The President's Plan to Strengthen Retirement Security
President Bush believes that we need to explore new ways to ensure that Social Security remains strong and financially secure for America's children and grandchildren. The President formed a bipartisan Presidential Commission to review Social Security and recommend reforms to put the system on sound financial ground. He has repeatedly stressed the need for modernization of the Social Security System. President Bush has also proposed solutions to strengthen pension plans and enhance retirement security for all Americans.
The President's plan to strengthen retirement security includes:
Creating a Society of Stakeholders: President Bush supports the creation of Individual Development Accounts, providing savings matches for low-income Americans to accounts that would grow tax-free. The President's Social Security framework would also give all wage earners the opportunity to invest in financial assets, an opportunity that only half of Americans can now afford.
Expanding Ownership of Retirement Assets: The tax relief legislation signed into law by the President in 2001 provided almost $50 billion dollars of tax relief over the next ten years to strengthen retirement security.
Ensuring Freedom of Choice: The President's proposal would ensure that workers who have participated in 401(k) plans for three years are given the freedom to choose where to invest their retirement savings. The President has also proposed that choice be a feature of Social Security itself, allowing individuals to voluntarily invest a portion of their Social Security taxes in personal retirement accounts.
Minimizing Risk through Diversification: The President's proposals would ensure that workers can sell company stock and diversify into other investment options, minimizing their risk.
Strengthening Women's Retirement Security: The President signed into law legislation that would allow for "catch up" contributions to retirement plans, helping millions of American women who took time out from the work force to care for dependent family members. The President's Social Security Commission also made a number of recommendations to vastly improve the treatment of women through Social Security, including the creation of property rights in a personal account for every woman who experiences a divorce, expanded benefits for widows, and new "anti-poverty" benefit guarantees that would benefit women.
Helping Future Generations Achieve the American Dream: The President has proposed extending Social Security to include inheritable assets. This provision would assist communities where life expectancies are unfortunately shorter than national averages, including African American households.
Spurring National Saving and Economic Growth: Tax relief legislation signed into law by the President will accelerate economic growth by expanding national saving. The President's Commission to Strengthen Social Security has found that the President's Social Security initiative would "lead to increased national saving" in a way that is necessary to foster long-term economic growth.
Encourage Job-Creating Investment in America's Economy
The new jobs and growth law encourages individuals and businesses to invest in America's economy. Reduction in Individual Tax Rates on Dividends and Capital Gains
Roughly 35 million American households receive dividend income that is taxable and will directly benefit under the President's plan. More than half of these dividends go to America's seniors, many of whom rely on these checks for a steady source of income in their retirement.
Almost half of all savings from the dividend tax cut under the President's plan would go to taxpayers 65 and older.
The new law will reduce dividend and capital gains taxes for millions of stockholders -pumping billions into the economy this year alone. Twenty-six million taxpayers with income from dividends and capital gains will receive an average tax cut of $798.
Increase Incentives for Small Businesses to Grow
Small businesses create the majority of new jobs and account for half the output of the economy. Their vitality is critical to America's economic health and the President's plan provides important incentives for their economic growth.
Current tax laws permit small business owners to write off as expenses up to $25,000 worth of equipment purchases. The President's plan will increase that limit to $100,000 and index it to inflation - encouraging them to buy the technology, machinery, and other equipment they need to expand.
If small business owners invest more than $100,000, they qualify for a 50 percent bonus depreciation that further reduces the cost of investment - encouraging investment that grows businesses and creates jobs.
Turning Recovery into Prosperity
The President's jobs and growth law will provide $109 billion in tax relief this year alone. It will spur real overall economic growth, yet it is disciplined and tailored to address specific challenges.
The American economy is strong, but it must be stronger. The President's plan is a focused effort designed to remove the obstacles standing in the way of faster growth and greater progress.
President Bush will not be satisfied until every American who wants a job can find one; until every business has a chance to grow; and until we turn our economic recovery into lasting prosperity that reaches every corner of America.
Any comments what have we achieved ????? Quiet a lot!!!!! Check it out.
Nitish Tewary