U.S. Treasurer Cabral addresses Bush Tax Cuts "misinformation"

Anna Escobedo Cabral, U.S. Treasurer

Mike, from Wayne, PA writes:

I keep hearing the press say that the economic growth is only confined to the highest earners, and that no one who earns below $1,000,000 per year is contributing to the tax-reciept growth. Is this true?

Anna Escobedo Cabral:

Mike, this is a great question. There is a lot of misinformation out there and I think it's important for you to know that the President's tax relief is benefiting virtually every single American taxpayer.

Unless it is made permanent, millions of Americans will face tax increases in 2011. More specifically, the following provides an illustration of just how many Americans on average will experience tax increases if the tax cuts are not made permanent:

* 115 million taxpayers – $1,716 increase;
* 84 million women – $1,970 increase;
* 48 million married couples – $2,726 increase;
* 42 million families with children – $2,084 increase;
* 12 million single women with children – $1,062 increase;
* 17 million seniors – $2,034 increase;
* 26 million small business owners – $3,637 increase; and
* More than 5 million taxpayers will become subject to the individual income tax.

This analysis assumes that the following provisions in the President's tax relief signed into law from 2001-2005 would be allowed, as scheduled, to expire at the end of 2010:

* Creation of the new 10 percent individual income tax bracket.
* Reduction in individual income tax rates above 15 percent rate bracket.
* Reduction of marriage penalties in the standard deduction, 15 percent rate bracket, and the earned income tax credit.
* Lowering the tax rate on capital gains and dividend income to 15 percent (0 percent for the lowest two rate brackets).
* Increase in the child tax credit to $1,000.
* Expansion of the partially refundable additional child tax credit.
* Increase in the child and dependent care tax credit.
* Simplification of the rules for determining income for the earned income tax credit.

http://www.whitehouse.gov/ask/20060801.html