Most Taxpayers Get Little Help From Bush Tax Cuts

Citizens for Tax Justice 1311 L Street, NW, Washington, DC 20005 202-626-3780

FRIDAY, MAY 30, 2003, 2 PAGES CONTACT: Bob McIntyre

Most Taxpayers Get Little Help From Latest Bush Tax Plan
Typical tax cut is about $100 in 2003-04, then drops to zero thereafter

Despite misleading presidential rhetoric, almost half of all American taxpayers will get less than $100 this year and next from President Bush’s just-passed tax plan. In 2005, threequarters of taxpayers will get less than $100, and in 2006 and later years almost nine out of ten will get less than $100.

A state-by-state analysis of the effects of the tax bill over the next four years by the Institute on Taxation and Economic Policy finds:

# In 2003, 49 percent of taxpayers will get $100 or less from the tax bill. For these 65.7 million unlucky taxpayers, the average tax reduction will be only $19.

# In 2004, 47 percent of taxpayers will get $100 or less. The average tax cut for these 63.4 million taxpayers will be $19.

# In 2005, 74 percent of taxpayers will get $100 or less from the President’s plan. The average tax reduction for these 97.9 million taxpayers will be $5.

# In 2006, 88 percent of taxpayers will get $100 or less from the tax bill. For these 118 million taxpayers, the average tax reduction will be $4.

“The President has given numerous speeches implying that most people stand to gain $1,000 or more from his latest tax bill, but that’s not true,” said Robert S. McIntyre, director of Citizens for Tax Justice. “In fact, over the next two years, the median tax reduction will be only about $100. After 2004, the median tax cut drops to zero.”

The median tax cut means that half of the taxpayers get less than that amount, and the other half get more. After 2004, when the tax bill’s modest middle-income relief expires, most taxpayers will get no tax reduction at all. The tax reductions for the wealthy, however, in the form of lower taxes on dividends and capital gains, along with cuts in the upper tax rates, continue after 2004.

A table detailing state-by-state figures for the number of taxpayers getting $100 or less annually from the new tax plan in the next four years is below. .
Effects of the 2003 Income Tax Cuts by Family Type, in 2003

--------Total --------% of total ----- Number with --- % with --- Median
-----number (000) -- number ----- <$100 tax cut ---- <$100 -----tax cut
Single, no kids 56,389 42% 43,469 77% $45
Single parents 17,176 13% 8,926 52% 95
Married, no kids 30,623 23% 8,933 29% 330
Married parents 29,373 22% 4,385 15% 1,000
All tax units 133,560 100% 65,712 49% $100

Taxpayers getting $100 or less from the Bush 2003 Tax Cut Program, 2003-2006

----------<$100 in 2003 ------<$100 in 2004 ----<$100 in 2005 ------<$100 in 2006
State --- #-000 % of TPs --- #-000 % of TPs --- #-000 % of TPs --- #-000 % of TPs
All States 65,712 49% 63,391 48% 97,867 74% 118,017 88%
Alabama 1,136 57% 1,078 54% 1,698 84% 1,899 93%
Alaska 122 43% 122 43% 183 63% 241 82%
Arizona 1,118 50% 1,106 48% 1,768 76% 2,054 87%
Arkansas 661 55% 644 53% 1,035 84% 1,142 92%
California 7,234 49% 7,193 48% 10,632 70% 13,447 87%
Colorado 1,039 48% 1,032 46% 1,586 71% 1,904 84%
Connecticut 632 39% 608 38% 999 61% 1,343 82%
Delaware 189 49% 190 48% 283 72% 349 87%
Dist. of Col. 132 50% 132 50% 181 68% 234 87%
Florida 4,164 52% 4,135 51% 6,203 76% 7,150 87%
Georgia 2,037 53% 2,017 52% 3,069 78% 3,585 90%
Hawaii 276 48% 266 47% 429 74% 510 88%
Idaho 313 53% 300 50% 471 78% 537 88%
Illinois 2,629 46% 2,575 45% 4,029 70% 5,029 86%
Indiana 1,318 48% 1,283 46% 2,126 75% 2,538 89%
Iowa 686 51% 667 49% 1,047 76% 1,208 87%
Kansas 577 48% 559 46% 916 75% 1,092 88%
Kentucky 1,028 55% 993 53% 1,541 81% 1,747 91%
Louisiana 1,091 56% 1,085 56% 1,587 81% 1,822 92%
Maine 320 52% 313 50% 487 78% 553 87%
Maryland 1,136 45% 1,088 43% 1,719 67% 2,254 86%
Massachusetts 1,342 44% 1,333 43% 2,016 65% 2,710 86%
Michigan 2,184 48% 2,121 46% 3,363 72% 4,117 88%
Minnesota 1,049 45% 1,043 44% 1,640 69% 2,052 85%
Mississippi 748 59% 728 57% 1,097 85% 1,211 93%
Missouri 1,307 50% 1,274 49% 2,041 77% 2,375 89%
Montana 216 53% 209 51% 325 78% 359 85%
Nebraska 371 47% 365 46% 596 75% 703 87%
Nevada 487 48% 490 46% 814 76% 970 90%
New Hampshire 248 41% 241 40% 396 65% 519 84%
New Jersey 1,677 42% 1,670 42% 2,488 62% 3,413 84%
New Mexico 367 54% 362 53% 551 79% 634 90%
New York 4,596 52% 4,501 50% 6,367 71% 7,880 87%
North Carolina 2,030 52% 1,959 50% 3,177 80% 3,604 90%
North Dakota 139 49% 139 49% 223 78% 251 87%
Ohio 2,635 48% 2,586 47% 4,200 75% 5,004 89%
Oklahoma 795 54% 767 52% 1,232 82% 1,400 93%
Oregon 845 51% 822 49% 1,273 76% 1,458 86%
Pennsylvania 2,875 50% 2,799 48% 4,249 73% 5,113 86%
Rhode Island 256 50% 254 49% 375 72% 464 88%
South Carolina 1,036 55% 1,004 53% 1,594 83% 1,774 92%
South Dakota 167 50% 168 50% 268 79% 302 87%
Tennessee 1,408 53% 1,403 52% 2,242 82% 2,548 92%
Texas 4,585 50% 4,603 49% 7,154 76% 8,646 91%
Utah 458 50% 437 47% 753 79% 869 91%
Vermont 123 43% 120 42% 209 72% 253 86%
Virginia 1,672 49% 1,628 47% 2,504 72% 3,079 88%
Washington 1,282 46% 1,268 45% 2,019 70% 2,472 85%
West Virginia 459 56% 450 55% 690 83% 770 92%
Wisconsin 1,202 48% 1,168 46% 1,868 73% 2,242 87%
Wyoming 95 43% 94 42% 153 68% 187 82%

Note: For taxpayers getting $100 or less, the tax cuts average $19 in 2003, $19 in 2004, $5 in 2005 and $4 in 2006.

Source: Institute on Taxation and Economic Policy Tax Model, May 30, 2003.

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