Tax Cuts Unpopular?
According to a Money magazine poll, a majority of Americans don't think that Bush's tax cuts helped them and would have preferred the government to devote the funds to helping create jobs or towards reducing the national debt.
And for those who make between $100,000 and $500,000 a year, many are finding that instead of a tax cut, this year they are getting a tax increase under the Bush scheme. The Alternative Minimum Tax is designed to limit the tax deductions this group of tax payers can take and is now starting to hit an increasing number of people in this bracket. Up to 2.3 million returns have been hit by this tax this year and by 2010 it will affect 33 million tax payers. By then it will be creeping down the income ladder and will also include 37 percent of those households making between $50,000 and $75,000 a year and a whopping 73% of those making between $75,000 and $100,000 a year. Bush's tax breaks were designed to make sure the very wealthy, those making a half a million or more a year, pay less taxes and now we can see one way they are paying for these tax cuts is by shifting the tax burden down the income ladder.