Presidential debate, Washington U., St. Louis MO: on Tax Reform

Al Gore: Comparison of wealthy tax cut to middle class exaggerated

Gore’s assertion was misleading, if not wrong. Using an analysis by Citizens for Tax Justice, the average annual tax cut for members of the top 1% under the Bush plan would be $46,072. Gore relied on a definition of middle-class at the low end of the spectrum - a range of $24,400 to $39,300 per household, with an average of $31,000. The average tax cut for that group would be $453 under the Bush plan, CTJ said. Multiplied times 130, the total is $58,890 - $12,818 more than the average tax cut for the top 1%. The vice president’s example would have worked only if there were no more than 101 people in the audience. Campaign aides said Gore had in mind comparing to someone making $1 million a year.

George W. Bush: Claims lower income people benefit more than rich; untrue

An analysis by Congress’s Joint Committee on Taxation shows that in 2005, Bush’s plan would reduce taxes on households making $200,000 or more by $32 billion, or 27% of the total tax cut in that year of $120 billion. Households making less than $40,000 would receive $12 billion in 2005, or 10% of the total.

Bush has said in all the debates that his plan would require people at upper-income levels to pay a greater share of federal income taxes. The analysis shows that households making $200,000 or more in 2005 would pay 27.4% of total federal income taxes under Bush’s plan, just as they do now. Households making $100,000 or more would see their share of the total income tax bill tick up to 25.2%, from 25.1% under current law. Neither calculation considers the effects of the estate tax, which would benefit people at upper-income levels the most.

Al Gore: Single wealthy person’s tax cut equal to roomful of people

GORE: Look, this isn’t about Gov. Bush, it’s not about me. It is about you. If everyone here in this audience [of several hundred] was in the middle of the middle class, then the tax cuts for every single one of you, all added up, would be less than the tax cut his plan would give to just one member of that top, wealthiest 1%. Now, you judge for yourselves whether or not that’s fair.

BUSH: Fifty million Americans get no tax relief under his plan.

GORE: That’s not right.

BUSH: And you may not be one of them; you’re just not one of the right people.

GORE: That 50 million figure, the journalists are the keepers of the scorecard and whether or not you’re using facts that aren’t right. And that fact is just not right.

Al Gore: Federal matching funds for poor and middle class savings

Q: How would your tax cut benefit a single woman with no dependents?
• GORE: If you make less than $60,000 a year and you invest $1,000 in a savings account, you’ll get a tax credit which means that the federal government will match your $1,000 with another $1,000.
• If you make less than $30,000 a year, you put $500 in a savings account, the federal government will match it with $1,500.
• If you make more than $60,000 and up to $100,000, you’ll get a match, but not as generous.
• You’ll get access to lifelong learning and education, help with tuition if you want to get a new skill or training.
• If you want to purchase health insurance, you will get help with that.
• If you are part of the bottom 20% or so of wage earners, then you will get an expanded Earned Income Tax Credit.
• And if you have an elderly parent or grandparent who needs longterm care, then you will get help with that.

Al Gore: Except for wealthiest, exempt people from estate tax

BUSH: Eliminate the death tax completely because people shouldn’t be taxed twice on their assets. It’s either unfair for some or unfair for all. I think if you’ve got tax relief, everybody benefits.

George W. Bush: Be fair and eliminate death taxes for everyone

BUSH: Eliminate the death tax completely because people shouldn’t be taxed twice on their assets. It’s either unfair for some or unfair for all. I think if you’ve got tax relief, everybody benefits.

George W. Bush: Claim that every taxpayer gets relief isn’t true

George W. Bush: Yes, wealthy get tax relief, but 6M poor will pay no tax

BUSH: If you pay taxes, you ought to get tax relief. The vice president believes that only the right people ought to get tax relief. I don’t think that’s the role of the president to pick: “You’re right, and you’re not right.” I think if you’re going to have tax relief, everybody ought to get it. And, therefore, wealthy people are going to get it. But we’ve structured the plan so that 6 million additional American families pay no taxes. If you’re a family of four making $50,000, you get a 50% cut in your federal income taxes. And I believe the people who pay the bills ought to get some money back. It’s a difference of opinion. He wants to grow the government, and I trust you with your own money.

Q: What do you say specifically to what the vice president said tonight? He’s said it many times, that your tax cut benefits the top 1% of the wealthiest Americans.

BUSH: Of course, it does. If you pay taxes, you’re going to get a benefit. People who pay taxes will get tax relief.

George W. Bush: Wealthy now pay 62% of all taxes; with his plan, 64%

GORE: Look, this isn’t about Gov. Bush, it’s not about me. It is about you. If everyone here in this audience [of several hundred] was in the middle of the middle class, then the tax cuts for every single one of you, all added up, would be less than the tax cut his plan would give to just one member of that top, wealthiest 1%. Now, you judge for yourselves whether or not that’s fair.

BUSH: Fifty million Americans get no tax relief under his plan.

GORE: That’s not right.

BUSH: And you may not be one of them; you’re just not one of the right people.

GORE: That 50 million figure, the journalists are the keepers of the scorecard and whether or not you’re using facts that aren’t right. And that fact is just not right.