Federal Taxes Lowest Since 1950; Taxes Lower With Obama Than With George W. Bush

For the third straight year, Americans will pay less money in federal taxes than they did when George W. Bush was president.

Income tax payments this year will be nearly 13 percent lower than they were in 2008, the last full year of the Bush presidency. Corporate taxes will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.

The poor economy is largely to blame, with corporate profits down and unemployment up. But so is a tax code that grows each year with new deductions, credits and exemptions. The result is that families making as much as $50,000 can avoid paying federal income taxes, if they have at least two dependent children. Low-income families can actually make a profit from the income tax, and the wealthy can significantly cut their payments.

The basic idea of taxes is to pay the bills of the federal government, and at that we are failing. And unlike the federal government, states can’t create deficits and have to stay solvent.

Income tax payments this year will be nearly 13 percent lower than they were in 2008, the last full year of the Bush presidency. Corporate taxes will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.

The poor economy is largely to blame, with corporate profits down and unemployment up. But so is a tax code that grows each year with new deductions, credits and exemptions. The result is that families making as much as $50,000 can avoid paying federal income taxes, if they have at least two dependent children. Low-income families can actually make a profit from the income tax, and the wealthy can significantly cut their payments.

Taxes are less under Obama than George W. Bush because of the stimulus package that Republicans objected to, which included more generous tax credits for college students, working families, home buyers and the working poor. And there is a 2% cut in payroll taxes.

By: Alan

Alan Colmes is the publisher of Liberaland.