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Obama Has Cut Taxes for 98.6 Percent of Working* Households** (Nate Silver)

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jefferson_dem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 08:47 AM
Original message
Obama Has Cut Taxes for 98.6 Percent of Working* Households** (Nate Silver)
Obama Has Cut Taxes for 98.6 Percent of Working* Households**
by Nate Silver @ 9:00 AM

One thing I dont quite get has been the White Houses reluctance to highlight the non-infrastructure parts of the stimulus package. Oh sure, people wanted more investment in roads and trains and energy grids and all that good stuff I did too, and thought the stimulus package spent an inadequate amount of money on them. But youre left with the impression that the rest of the stimulus was just thrown down a well somewhere. In fact, it was not. The extension in unemployment benefits that the government provided under the stimulus, for instance, is turning out to be highly useful to a lot of people. I dont necessarily expect the people receiving extended unemployment insurance to turn around and write Obama a thank-you note but the White House might want to at least occasionally make the point its their initiative that is helping them to keep putting food on the table.

Likewise with the tax reductions in the stimulus which collectively made up $288 billion, or about 37 percent of the package. Most of those tax cuts are targeted at individuals. And while the they arent terribly deep, they are impressively broad.

The broadest tax cut in the stimulus package is the Making Work Pay tax credit, worth about $116.2 billion (see the Urban Brookings Tax Policy Center for this and other figures) and applicable to the vast majority of working Americans. Indeed, all single filers making less than $95,000 and all joint filers making less than $190,000 are eligible for this tax cut. Most of them, in fact, are already receiving it in the form of lower withholding on their paychecks.

The well-to-do are benefiting too or at least they will once it comes time to file their taxes next April. Thats because, as part of the stimulus, the government extended the alternative minimum tax (AMT) patch, which reduces the tax burden for some 24-26 million Americans who would be subject to the AMT. Most people who would be hit by the AMT are doing pretty well. The median income among people who would be subject to the AMT is about $130,000, and the average is about $165,000. This has the convenient property, though, of starting to kick in right where the Making Work Pay credit phases out, meaning that a great number of Americans who won't benefit from former program will benefit from the latter one.

Finally, there are a number of smaller tax rebates and credits that are more highly targeted to buyers of new cars and new homes, to small businesses, to low-income families with children, to the unemployed, and so forth. Well focus principally on one of these, which is the credit for new car purchases.

But first what do I mean by working households? By households, I mean simply tax filers. There were about 143 million individual or joint income tax returns filed in 2007, according to the IRS (this is the most recent year for which statistics are available). By working I mean that the taxpayer had some sort of taxable income, which was true of about 111 million of the 143 million returns.

<SNIP>

http://www.fivethirtyeight.com/2009/08/obama-has-cut-ta...
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solstice Donating Member (278 posts) Send PM | Profile | Ignore Sat Aug-08-09 08:50 AM
Response to Original message
1. BUT - if you are RETIRED - you get NOTHING.
I should know.

So - thanks for NOTHING, OBama.
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eleny Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 08:55 AM
Response to Reply #1
2. Husband and I are retired and we got tax cuts
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SemiCharmedQuark Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 09:01 AM
Response to Reply #2
5. So did my grandma.
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Schema Thing Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 08:57 AM
Response to Reply #1
3. not according to the above.
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jefferson_dem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 08:57 AM
Response to Reply #1
4. FAIL.
Try again.
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shraby Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 09:03 AM
Response to Reply #1
6. We got a check in the mail as did other retirees in this
round of tax cuts.
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goclark Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 12:21 PM
Response to Reply #6
13. We got the tax cut too~
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Avalux Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 10:34 AM
Response to Reply #1
9. My Dad is retired and got a tax cut. n/t
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Phx_Dem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 10:37 AM
Response to Reply #1
10. Nice try.
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Karenina Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 11:43 AM
Response to Reply #1
11. Oh dear...
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Hansel Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 12:31 PM
Response to Reply #1
14. My dad paid taxes when he was retired.
All the way up until his death at 84 and after. I should know, I was the executor for his estate. He wasn't rich, but he did have a healthy retirement account that he paid taxes on.
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madmom Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 12:52 PM
Response to Reply #1
15. My husband and I are retired. We also got a tax cut!
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Sat Aug-08-09 01:21 PM
Response to Reply #1
16. Deleted message
Message removed by moderator. Click here to review the message board rules.
 
Baltoman991 Donating Member (869 posts) Send PM | Profile | Ignore Sat Aug-08-09 02:36 PM
Response to Reply #1
18. Geez,
that one probably didn't go as you'd hoped eh? Come back again with something factual as I know of no one retired who got nothing.
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ncteechur Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 09:54 PM
Response to Reply #1
19. Move along troll.
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TexasObserver Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 09:12 AM
Response to Original message
7. Recommend
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zbdent Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 10:24 AM
Response to Original message
8. If a tree falls in the forest, and Faux News has it on tape, but doesn't
show it, did it make a sound?
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NYC_SKP Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 12:17 PM
Response to Original message
12. K & R! nt
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Cha Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-08-09 02:28 PM
Response to Original message
17. Maybe someone from Team Obama will
read Nate Silver!

Thanks admin for cutting taxes! Not that our US mediawhores would ever report it!
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SpartanDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-09-09 12:25 AM
Response to Original message
20. Obama point these things out regularly
at almost every speech on the economy that he gives.
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