A new analysis by USA Todayshows that the American Recovery and Reinvestment Act (Recovery Act),which cut taxes for 98 percent of all Americans, helped bring taxes down to the lowest level since 1950.
The report states that:
·“One-third of last year’s $862 billion economic stimulus [under the Recovery Act] went for tax cuts. Biggest reduction: The ‘Making Work Pay’ tax credit reduced income taxes $800 for married couples earning up to $150,000.”
·“Federal, state and local taxes — including income, property, sales and other taxes —consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports. That rate is far below the historic average of 12% for the last half-century.”
·“On average…the tax rate paid by all Americans — rich and poor, combined — has fallen 26 percent since the recession began in 2007. That means a $3,400 annual tax savings for a household paying the average national rate and earning the average national household income of $102,000.”
In the past year, Democrats have provided 98 percent of Americans with a tax cut. Democrats continue to fight to ensure that hard-working middle-class families and individuals receive the tax relief they need now more than ever to recover from the most severe recession this country has faced since the Great Depression. The Recovery Act, which delivered a record $3,000 average tax refund to Americans in 2010, included the following key provisions:
·10 percent refundable first-time home buyer credit
·$1,500 renewable energy incentive tax credit
·federal deduction of state and local sales taxes paid on new vehicle purchases
·temporary suspension of federal income tax on first $2,400 of unemployment benefits
·expansion of 529 education plans
By contrast, Republicans have served up tax breaks for multi-millionaires and special interests, at the expense of working- and middle-class Americans and future generations. The Bush tax cuts, enacted in 2001 and 2003, disproportionately benefited the wealthiest Americans and led to massive increases in the national debt at the expense of the middle class and future generations.
Republicans threaten to take us back to the failed policies that created the economic crisis. Republicans are on the side of the big banks and Wall Street firms that created the economic meltdown. They’re on the side of credit card companies, big oil, and insurance companies. Senate Republicans voted against the Recovery Act. They voted against the HIRE Act. Today, as Democrats work to protect consumers, Republicans continue to do the bidding of lobbyists in attempting to weaken accountability for Wall Street.