The Bush Tax: How Much Is It Costing You?

Since John McCain supports the system of Bush Tax Cuts for the Wealthy, I thought I'd rerun this article from Blog for Iowa from May 2004.  This is how the tax burden shifted from the wealthy to the rest of us under the irresponsible Bush regime.

Rather than take responsibility for our common future, Bush has shifted costs to states and communities, who then pass them on to you.  Across the country, people are seeing their property taxes skyrocket. State college tuition at 4-year schools has increased this year by an average of $579 nationwide. Half a million children have been deprived of health coverage.  States and local government have cut vital services, and we're all having to pay more for less.  That's the Bush Tax.

Bush is largely to blame for the fiscal crisis that has forced states and communities to raise taxes and slash services.  According to the non-partisan Center on Budget and Policy Priorities (CBPP), "A conservative estimate suggests that federal policies are costing states and localities about $185 billion over the four-year course of the state fiscal crisis."  Bush has shifted health costs to states and forced states to pay for unfunded mandates for homeland security, election reform, and No Child Left Behind.  As a result, states and communities have had no choice but to raise taxes and cut services.  That's the Bush Tax.

Our children and grandchildren will be paying the Bush Tax.  Bush promised, "I came to this office to solve problems and not pass them on to future presidents and future generations."  Yet as a direct consequence of his tax policy, over six years an American family of four will take on $52,000 more in its share of the national debt. That's the Bush Tax.

How is Bush paying for his tax cuts? To pay for his tax program, Bush raided Social Security Trust Funds and made off with $500 billion, eroding our protections for the elderly. Then he borrowed another $500 billion from foreigners, putting our future in their hands. For every $100 you got back in tax cuts, $40 was borrowed from foreigners, $20 was borrowed from Americans, and $40 was taken from Social Security.

The Bush Tax is huge - many times greater than most people's income tax cut under Bush.  For the bottom 60 percent of Americans, the average tax cut was just $304.  The median tax cut for all Americans was only $470.  In contrast, the average tax cut for those making over $1 million a year was $112,925.

Sources:

     � The New Republic, "Why Dean is Right on Taxes,"   1/26/04

     � U.S. News & World Report, "What Tax Cut? States Are Using Higher Taxes and Fees to Take Back What Uncle Sam is Giving Away," 2/2/04 

     � Center on Budget and Policy Priorities, "Federal Policies Contribute to the Severity of the State Fiscal Crisis," 12/3/03

      � Center on Budget and Policy Priorities, "Up to 1.6 Million Low-Income People - Including About Half a Million Children - Are Losing Health Coverage Due to State Budget Cuts," 12/22/03

     � College Board, "Trends in College Pricing 2003," 10/21/03

     � Citizens for Tax Justice, "We're Paying Dearly for Bush's Tax Cuts," 9/23/03

     � Center on Budget and Policy Priorities, "State Budget Deficits Projected for Fiscal Year 2005," 1/30/04

     � Figures on the incidence of the Bush tax cuts were provided by the Urban-Brookings Tax Policy Center.

     � Figures showing that national debt owed to foreigners have increased from $1 trllion in January 2001 to $1.5 trillion currently are from the U.S. Treasury International Capital System website.

     � Figures showing that the total assets of the Social Security Trust Funds borrowed by the federal government have increased from $1 trillion in January 2001 to $1.5 trillion currently are from Social Security Online.

     � Figures showing the $1.3 trillion increase in the national debt under Bush are from the U.S. Bureau of the Public Debt.