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Bush tax cuts (actual details??)

Posted: Wed Feb 13, 2008 6:02 pm
by PatrickS
Does anybody know what the actual details of the Bush tax cuts were? I recently tried to Google them, but was unable to find anything other than partisan rants on how unfair they were or details of their "effect".

I know that there were some bracket changes, the LT capital gains rate went from 20 to 15%. Qualified dividends are no longer taxed. Can anybody point me to anything that actually describes all of the changes?

Posted: Wed Feb 13, 2008 6:57 pm
by strafe
Try these Wikipedia entries, which although not entirely neutral and free of ranting, are probably fairly accurate:
Jobs and Growth Tax Relief Reconciliation Act of 2003
Economic Growth and Tax Relief Reconciliation Act of 2001

MoneyChimp has a summary of tax brackets since 1992.

As you note, the changes went beyond marginal rates. IRA contribution limits, personal exemptions, and standard deductions changed as well.

As you can see, the effect of the cuts was to make the income tax on labor more progressive. The lowest bracket decreased 33%, whereas the highest bracket decreased only 11.6%. As a result, the proportion of federal income tax revenue paid by high earners increased and the income tax liability for many lower income households was totally eliminated.

Re: Bush tax cuts (actual details??)

Posted: Wed Feb 13, 2008 7:36 pm
by cato
PatrickS wrote:. . . Qualified dividends are no longer taxed. . .
That depends on the individual's tax bracket. If your income tax rate is less than 25% you pay 5% for qualified dividends. If your income tax rate is higher than 25%, you pay 15% for qualified dividends.

[political comments removed by me! I beat mel to it!]

-cato

Re: Bush tax cuts (actual details??)

Posted: Wed Feb 13, 2008 9:26 pm
by Mel Lindauer
cato wrote:
PatrickS wrote:. . . Qualified dividends are no longer taxed. . .
That depends on the individual's tax bracket. If your income tax rate is less than 25% you pay 5% for qualified dividends. If your income tax rate is higher than 25%, you pay 15% for qualified dividends.

[political comments removed by me! I beat mel to it!]

-cato
Good job of self-moderation, Cato! Now you don't even get added to the Moderators "Bad Guys List". :D

Regards,

Mel

Re: Bush tax cuts (actual details??)

Posted: Wed Feb 13, 2008 9:43 pm
by White Coat Investor
Mel Lindauer wrote:
Good job of self-moderation, Cato! Now you don't even get added to the Moderators "Bad Guys List". :D

Regards,

Mel
Am I still on that list? :)