Analysis Shows Economic Stimulus Plan Benefits Rich Over Seniors
Feature Story by civilrights.org staff - 3/18/2003
The Alliance for Retired Americans has released an analysis of the administration's budget and economic stimulus plan that shows President Bush's proposed tax cuts aid the wealthy at the expense of America's senior citizen population. According to the analysis, President Bush's determination to give tax breaks to the wealthy - even as he contemplates a multi-billion dollar war effort excluded from budget predictions - will result in enormous cuts in programs for older Americans.
The Alliance, which represents nearly 3 million union retirees and other older Americans, believes the Bush economic stimulus plan disproportionately benefits the wealthy and puts retirees and seniors at risk of losing much needed services and benefits.
According to the Alliance:
- The top one percent of taxpayers will receive 28 percent of benefits from President Bush's economic stimulus plan. Those with incomes above $1 million would receive an average tax cut of $90,000. The top one percent of taxpayers with incomes above $370,000 would get tax cuts averaging $24,100, while taxpayers making less than $77,000 would receive an average of $226.
- The Administration's plan to repeal the dividend tax puts millions of seniors at risk because it will cause a loss of revenue to the states, which are already financially strapped and making Medicaid program cuts.
- The Administration, however, claims the dividend tax will help seniors; but nearly 40 percent of the benefits that would accrue to the elderly would go to the 2.5 percent of seniors whose incomes exceed $200,000. Those with incomes below $50,000, which includes two-thirds of all seniors, would receive only 13 percent of the dividend tax cut.
- If the 2001 tax cuts are made permanent, the national budget will plunge into a permanent deficit, and again, the greatest benefit will be to the wealthiest one percent with an income above $374,000 per year.
George J. Kourpias, President of the Alliance for Retired Americans, stated, "In the two years he has been in office, when the President has had an opportunity to choose between helping corporate interests and the wealthy or helping America's seniors, he has chosen to side with special interests at the expense of seniors."
