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      02-25-2006, 12:05 PM   #38
CnoteMD
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Quote:
Originally Posted by espo89
The major problem with this statement and alot of the statistics that are used to support it is that whenever someone pays are larger absolute amount of taxes, when there is a tax break, of course those they pay more will get a bigger absolute share of the result. There is no way around that.

If you look at another statistic, the percentage of income that tax break provides, then the people in the middle to lower lever of incomes, get the biggest percentage break. For instance, if a person making $200,000 a year gets a $1000 tax break, thats 0.5% of their income. If a person making $30,000 a year gets a $600 tax break, thats 2% of their income... While the $1000 is a higher absolute number, the $600 means alot more to the second person and he/she is able to do more things with it.

So any tax break can be looked at in a couple of different ways. It just depends on what side of the debate you are on, as to what type of measure you want to us.

Great quote I've heard a couple of times (not sure who it is credited to): " There are lies, damn lies and statistics"

I really wish that where the case, but even percentage-wise things aren't balanced.

Here is a simple experiment comparing how tax cuts affect different income levels.

http://www.smartmoney.com/tax/filing...ory=bushtaxcut

This chart compares the taxes under the old tax rules and the new tax rules. In my example, I used a couple filing jointly with no children.

-At an income of $50K, the tax savings is $332 (6.94% savings over old rules).
-At an income of $500k, the tax savings is $13,351 (an 8.33% savings).
-At an income of $5M, the tax savings is 175,351 (a 9.24% savings).

I used round numbers to illustrate that with a 10 fold increase in income, the tax savings increase disproportionately.
-from 50k to 500k, there is a 10 fold increase in income, but a 40 fold increase in tax savings.
-from 50k to 5m, there is a 100 fold increase in income, but tax savings increase over 500 fold.

I meet a lot of republicans and many of them don't even agree with the things going on in our government these days. However, there are still those who will go along with anything labeled as republican. And these individuals will continue to support and defend Bush, regardless of how immoral or devious his actions may be.

I try to look at things from the perspective of what will result in the greater good and not from a completely self-centered view. In reality, many of these new tax laws have benefitted me tremendously. However, I would rather give up the "fraction of a percent" of my income in order to see this country improve.
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