By 2006, a person earning $1 million a year saves $48,032 on their IRS bill if the tax cut passed by the House of Representatives becomes law. That multi-millionaire will see his or her windfall grow steadily starting in 2002. 

A working family making $71,000 a year ÐÐ for example, a Machinist with a spouse who works and three kids ÐÐ would save about $2,200 by 2006. That seems like a big tax savings until you realize it amounts to $40 per week and it won’t show up on your pay stub until 2006.  

The sad truth is: Only a small portion of President George W. Bush’s proposed tax cut takes effect this year. The rest is phased-in over the next five years. 

The White House overstates its tax cut’s power as an economic stimulus. This year, rich and poor alike will see very little relief. The trickle in this trickle-down approach starts seeping out next year when one-fifth of the total tax cut comes into play. 

The saddest truth is this: the gap between what the wealthy receive and what working families get only gets wider with time. By 2006, the typical Machinist family will receive 1/24th ÐÐ about 4 percent ÐÐ of the tax cut that a multi-millionaire gets. 

“Working families need a bigger tax break now,” says IAM President Tom Buffenbarger. “We cannot wait until 2006. We’ve earned a ‘prosperity dividend’ and we want our paychecks to reflect one this year when we really need it.”



For more information about the Bush tax plan go to Citizens for Tax Justice (www.ctj.org).

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