Obama is doing his Twitter to Media tour promising that we can fix the giant hole in the economy he caused by abolishing the Bush tax cuts that favored the 1 percent. But did they really?
As John Merline at IBD shows us, the 1 percent paid more money under the Bush tax cuts, while the middle class paid less. That is why they were called middle class tax cuts.
It’s been more than 10 years since President Bush signed his first round of tax cuts into law. And in the years since, those cuts have been the source of constant attacks. Critics charge they gave away too much to the rich, exploded the deficit, contributed to income inequality, did little to spur economic growth, and so on.
President Obama has for years attacked the Bush cuts, and demanded that the top two income tax brackets return to Clinton-era levels.
The rich paid more. Despite endless claims by critics that Bush’s tax cuts favored the rich, the fact is the rich ended up paying more in taxes after they went into effect.
In fact, IRS data show that the richest 1% paid $84 billion more in taxes in 2007 than they had in 2000 — that’s a 23% increase — even though their average tax rate went down.
What’s more, their share of the overall income tax burden grew, climbing from 37% in 2000 to 40% in 2007.
At the other end of the spectrum, the bottom half of taxpayers paid $6 billion less in income taxes in 2007 than they had seven years earlier — a 16% drop — and their share of the total income tax burden dropped from 3.9% to 2.9%.
Millions dropped from the tax rolls entirely. Another unheralded feature of the Bush tax cuts is that they pushed nearly 8 million people off the tax rolls entirely because, among other things, Bush doubled the per-child tax credit to $1,000 and lowered the bottom rate to 10%.
But of course we all know that Obama hates the middle class. You don’t earn the support of the two richest men in America by being for the middle class and against the rich. You do it by rewarding crony capitalism while punishing free enterprise and attacking the working middle class.