From the Real Socialist: Bernie

Taxes at Lowest Level Since 1950

October 26, 2010

During the past two years, Congress passed a total of $509 billion in tax cuts for American families and small businesses. The tax burden on Americans is now at its lowest level in 60 years, according to the Center on Budget and Policy Priorities. The most significant single change was a decrease in income taxes by up to $400 a year for individuals and $800 for married couples. Who knew? In a recent New York Times/CBS News Poll, fewer than one in 10 respondents knew that taxes were lowered for most Americans. A third even thought that their taxes had gone up. "We did a magnificent job of selling this tax break," Sanders deadpanned at an event last weekend in Hardwick, Vt., where he mentioned the poll.

The following list identifies the major tax cuts enacted during the past two years.

American Recovery and Reinvestment Act of 2009 (P.L. 111-5; JCX-19-09)

Tax relief for individuals and families (e.g., Making Work Pay Credit, American Opportunity Tax Credit, first-time homebuyer credit, and AMT relief)	$232,426 million
Clean energy incentives	$19,963 million
Tax cuts for businesses	$6,150 million
Manufacturing recovery provisions	$1,850 million
Economic recovery tools (e.g., recovery zone bonds, new markets tax credit)	$6,501 million
Infrastructure financing tools (e.g., school construction bonds, Build America Bonds)	$19,638 million
Low-income housing and energy property provisions	$74 million
$250 refundable tax credit for federal and state pensioners not eligible for Social Security	$218 million
Health Coverage Tax Credit provisions	$457 million
Low-income housing tax credit provisions	$143 million
Assistance for COBRA health coverage premiums	$24,677 million
TOTAL (over 2009-2019)	$312,097 million

Patient Protection and Affordable Care Act (P.L. 111-148; JCX-17-10 and CBO, Table 2)

Tax credit to help small businesses afford health coverage	$37,000 million
Tax credit to help individuals afford health coverage (Exchange Premium Credits)	$106,000 million
Therapeutic Discovery Tax Credit (for small businesses to produce innovative medical therapies)	$900 million
Adoption tax credit	$1,200 million
Health professional state loan repayment tax relief	$100 million
TOTAL (over 2010-2019)	$145,200 million

Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92; JCX-45-09)

First-time homebuyer tax credit provisions	$10,823 million
Business tax cut (increase carryback period for net operating losses)	$10,407 million
Military BRAC fringe provisions	$243 million
TOTAL (over 2010-2019)	$21,473 million

Hiring Incentives to Restore Employment Act (P.L. 111-147; JCX-6-10)

Payroll tax forgiveness for hiring unemployed workers	$7,616 million
Business tax credit for retaining newly hired workers	$5,422 million
Business tax cut (increase in expensing of certain depreciable assets)	$35 million
Qualified Tax Credit Bonds provisions	$4,561 million
TOTAL (over 2010-2020)	$17,634 million

Small Business Jobs and Credit Act of 2010 (P.L. 111-240; JCX-48-10)

Small business tax cut (modification to exclusion for gain from certain small business stock)	$518 million
Small business tax cut (5 year carryback of general business credit of eligible small business)	$107 million
Small business tax cut (general business credits of eligible small business not subject to AMT)	$977 million
Small business tax cut (reduction in recognition period for built-in gains tax)	$70 million
Small business tax cut (enhancements to section 179 property provisions)	$2,177 million
One-year extension of bonus depreciation	$5,454 million
Increase deduction for start-up business expenditures	$230 million
Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits	$176 million
Deduction for health insurance costs in computing self-employment taxes	$1,919 million
Cell phones and telecommunications equipment provisions	$410 million
TOTAL (over 2011-2020)	$12,038 million

Homebuyer Assistance and Improvement Act (P.L. 111-198; JCX-34-10)

Extend eligibility for the first-time homebuyer credit	$140 million
TOTAL (over 2010-2020)	$140 million

Charitable Donations for Haiti Earthquake Relief (P.L. 111-126; CBO)

Tax benefit for charitable cash contributions toward Haiti earthquake relief	$2 million
TOTAL (over 2010-2020)	$2 million