Extend the Bush Tax Cuts

By Caomhin

One thing that seems to be forgotten right now among the many, many, many, horrible bills that the Democrats are producing right now is the issue of President Bush’s tax cut’s expiring.  You’ve heard so often how the tax cuts are for the ‘wealthy’ and have no impact on people outside of the top tax brackets.  It’s complete bull and Democrats know it.  However, I have not seen a chart that fully illustrates what the tax cuts, set to expire in 2010 (i.e. our taxes are going up in 2010 absent their renewal) do for earners in every income bracket.  I’ve decided to make one and post it here:

Income Range Tax % with Cut Tax % without Cut Net % Increase
0-8025 10 15 33
8025-26250 15 15 0
26250-32550 15 28 87
32550-63550 25 28 12
63550-78850 25 31 24
78850-132600 28 31 10.7
132600-164550 28 36 28.6
164550-288350 33 36 9.1
288350-357700 33 39.6 20
35700+ 35 39.6 13.1

As you can see, everyone will face a tax increase in 2010 unless the tax cuts are expired save for the 8025-26250 tax bracket.  The income earners between 26250-32550 will face a gigantic increase in their taxes, far more significant than every other bracket which will be greatly impacted as well.  The Liberals, for some reason, have been effective in spreading the lie that the Bush tax cuts were only for the wealthy, whereas you can plainly see that the greatest beneficiaries of the tax cuts were people earning under 164500 per year.  Also keep in mind that the top tax bracket will actually jump to 44.6% of their total income on just the Federal Tax Level if the healthcare bill passes.  Imagine all that money leaving the private sector all at once at the tail end of a recession coupled with PorkFest 2009 running out.  What do you think will happen to the market?

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