Answer: Set Aside Middle-Income Tax Cuts to Focus on Rich
Republican lawmakers, facing the prospect that their power to cut taxes may soon be curbed, plan to extend breaks that mostly benefit the wealthy and Wall Street at the expense of reductions for middle-income households.
Six months before elections that may return a Democratic majority in at least one house of Congress, Senate Majority Leader Bill Frist of Tennessee and House Speaker Dennis Hastert of Illinois are focusing on extending the 15 percent rate on investments and repealing the estate tax. They won't push extensions of lower rates for all taxpayers and expanded breaks for married couples and families with children, which expire after 2010. ***
Internal Revenue Service data show taxpayers who earned at least $1 million reaped 43 percent of all savings from reduced rates on dividends and capital gains. The estate tax will affect only 12,600 families with more than $2 million in assets this year, a number that will decline to 7,200 by 2009, according to a study by the Tax Policy Center. ***
Never Forget: In the GOP's America, if you're not First Class, you're Steerage. Democrats have taken the lead over Republicans on most issues, including taxes
Democrats have taken the lead over Republicans on most issues, including taxes, for the November congressional elections, according to a Bloomberg/Los Angeles Times poll conducted last month. The survey of 1,234 registered voters found that 49 percent of respondents favored Democratic candidates in their district, compared with 35 percent who said they would vote for a Republican.