The Rich Get Waaaay Richer

by Donna Jablonski, Apr 5, 2006

President Bush’s investment tax breaks for the rich are paying off big time for them that’s got. Taxpayers with incomes of more than $10 million got an average $500,000 investment tax break in 2003, The New York Times reveals today. Add their compensation tax breaks to the investment tax cut and their average tax savings climbs above $1 million.

The Times analyzed Internal Revenue Service data for 2003 (the latest figures available) as Congress considers making Bush’s tax cuts permanent. People with incomes topping $1 million a year—one-tenth of 1 percent of us—“reaped 43 percent of all the savings on investment taxes in 2003. The savings for these taxpayers averaged about $41,400 each,” according to the report. A separate analysis cited by the Times finds more than 70 percent of the tax savings on investment income went to the top 2 percent, about 2.6 million taxpayers.

Rep. Charles Rangel (D-N.Y.) told the Times Bush’s tax cuts are “beyond irresponsible” when “we’re in a war; we haven’t fixed Social Security or Medicare; we’ve got record deficits.”

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