Shocking: Tax Cuts Go to the Wealthy

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In the New York Times today, David Cay Johnston has some data to back up what many people have been saying all along—that Bush’s 2003 tax cuts on dividends and other investment income mostly benefited the very wealthy:

Americans with annual incomes of $1 million or more, about one-tenth of 1 percent all taxpayers, reaped 43 percent of all the savings on investment taxes in 2003. The savings for these taxpayers averaged about $41,400 each…

[By contrast, t]hose making less than $50,000 saved an average of $10 more because of the investment tax cuts, for a total of $435 in total income tax cuts, according to the computer model.

Meanwhile, Johnston reports that the usual administration line on these tax cuts—that lower taxes on investment will lead to more investment—may not even be true, according to the non-partisan Congressional Research Service. (In fact, they may even lead to lower savings because “people need fewer investments to earn the same after-tax income.) So much for that rationale. But hey, at least the tax cuts were good for growth. No, wait, that’s probably not true. Okay, well at least they were affordable and didn’t blow a hole in the federal budget. No, that’s not true either. Um…

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Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

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