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Scott Hodge, "Who Really Benefits from the Extended Tax Cut?" The Tax Foundation, May 2006 (taxfoundation.org)
In the wake of the latest tax bill signed by President Bush, the media have focused on the alleged regressive nature of his tax cuts. Citing data from the Tax Policy Center, the claim is made that the average American earning over $1 million will save $43,000 in taxes, while someone making between $10,000 and $20,000 will save only $3. These data do not tell the whole story, according to Tax Foundation president Scott Hodge.
It is important to bear in mind that "the Tax Policy Center is comparing the tax relief going to people who pay income taxes with millions of people who either do not file a tax return or do not owe income taxes.... Simply put, you cannot give income tax relief to people who pay no income taxes, and the number of Americans outside of the tax code has exploded in recent years."
The Tax Policy Center's estimates on tax relief include the 20 million Americans at the bottom of the income ...
Source: HighBeam Research, The tax-free economy.(tax law)