10 Years Later, How Bush-Era Tax Cuts Changed America [CHARTS]

A decade has now passed since the Bush-era tax cuts were signed into law, and the topic remains as divisive as ever.

To mark the ten-year anniversary of the tax cuts, extended last year for both upper- and middle-class Americans in a deal to reauthorize unemployment insurance, the non-partisan Center on Budget and Policy Priorities published five graphs illustrating how the cuts have changed America, and will continue to do so in the future.

What they find is unevenly distributed benefits. The percentage increase in after-tax income tilts greatly in favor of those making over $1 million, for one, especially when compared to Americans making between $40,000-$50,000. And at a time when the country is sunk in $14.3 trillion worth of debt, it's adding vastly to deficit, too. Indeed, the cost of the upper-income tax cuts is roughly equal to the Social Security shortfall in that span, CBPP says.

Criticism of the tax cuts has not died, either. In a blog post this week, Roger Hickey, co-founder of the Economic Policy Institute, for example, called the cuts "another experiment in conservative voodoo economics." And even some of those who've benefited most from the cuts now view them unfavorably, specifically the roughly 200 "Patriotic Millionaires" that recently wrote a letter to Congressional Republicans asking that their taxes be raised to help deficit reduction, rather than relying alone on cuts in government spending.

Below are five charts provided by the Center on Budget and Policy Priorities showing different ways the Bush tax cuts have affected the nation.

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Effect On After-Tax Income

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Comments

[BookQueen]

01:24 PM on 07/31/2011

The chart is misleading. There's a big group of families who earn more than $50,000 and less than a million.

More importantly, paying $860 more in taxes is a huge loss for someone earning less than $50,000.

The graph also lists it as being a loss per taxpayer. So in a family, how many taxpayers are there? It would be awful for family of four to lose $1720+ income.

The rich get bigger cuts, of course, but they are paying more. The real issue, though, is that the rest of us benefit from these cuts and will be hard hit if they run out.

[Sandy Warner]

01:28 PM on 07/26/2011

They all talk percentages but they don't tell how much money the rich actually pay.... that's the kicker here. 47% of the people in this country pay all the taxes.

[Kenz300]

09:34 AM on 07/09/2011

Republicans have very short and selective memories. THe country was running an annual budget surplus when Bush came into office. He gave the top 2% a tax break the country could not afford. He also started two wars and decided not to bother paying for them. He ran up the national debt by trillions of dollars with the support of all the Republicans. They ran the country into the ground and by the time he left office we were losing 750,000 jobs a month. These hypocrites will say anything or do anything to get back the White House even if it means hurting average Americans.

[liberalist]

04:55 PM on 07/08/2011

Every time a socialist makes the argument "the rich benefited the most from Repubs",
a capitalist should reply...

"Time for the middle class to benefit as well"...

[BobbyNCorpus]

09:20 PM on 07/06/2011

Bush tax cuts changed america all right . Screwed up tehd ebt by refusingto pay for his ill conceived wars. gave the tax to is rich buddies.So 48 percent of taxpayer dont file . that means theydont make enough t o file. Do i think all americans should pay sometaxes.? Of course. I also believe that we should bring the draft back. That was we could at least get the rich to serve the countryinsome way. They have always found a way ofdodgingt the draft , if we gave no deferments theywould have t o go. Go get shot at like therest of us. nam vet

[nmcanopus]

06:48 PM on 07/06/2011

What is wrong with the 400 people who make as much as 150 million of the rest of us paying the same tax rates as existed under President Clinton or even President Reagan? We should give all of those rich people and corporate executives, who think they made it without the support of the rest of society, a knife to put between their teeth, send them into the woods, and see how much money they make when they are on their own.

[ThinkGlobal]

04:45 PM on 07/06/2011

Warren Buffet said he pays less taxes then his Secretary who earns $80,000.00

Repeal Bush Tax Cuts

How fast can we get 5000 posts to Congress and Senate ...

[liberalist]

04:57 PM on 07/08/2011

Buffet is a terrible traitor of capitalism...
Also a big liar..
He doesn't pay less TAXES,he pays a smaller TAX RATE,because his revenues are taxed as capital,at 15%...

[rrobin6128]

01:35 AM on 06/30/2011

Folks on the left, now you get to hear the rest of the story. Under Bush we had record revenues coming into the Government. You can't blame the tax cuts when this EXTRA revenue was spent by a Democratically controlled House and Senate since 2007? Any questions here!

[zanlok]

06:26 PM on 06/29/2011

This article is completely misrepresenting what's going on. First of all, the changes in tax code are just letting people keep money that's already THEIRS. It does not belong to the government, and it is wrong to act like someone else would be in the right to take it away. Secondly, the reason the people making more got a greater benefit is because they are already paying more.

This article is acting like the tax rate on lower income levels isn't fair in a high range, but those income levels don't pay much in taxes - by percentage. At the higher levels, people were already paying TOO MUCH, and the Bush cuts help correct that situation. The only fair thing would be a flat tax. This article is irresponsible in that it represents the issue from a perspective that the tax cuts "cost" the government money and intimates that the debt would be lower if not for the cuts. WRONG.. the government needs to cut spending and operate on a fair level of taxation - one that is equal for all Americans, leaving room for lower income levels to keep what they've earned and support families, looking forward to earning more in the future, and for people that earn more to be able to continue to drive the economy through buying power and business investments.

[4thefree]

11:53 PM on 06/29/2011

Lots of truth here. However, the Left will never get it. The top 2% earners pay an enormous amount of taxes while half the population pay nothing. Yet, who benefits from all the freebies (paid out from our tax $$$); certainly not the rich. If this Administration would only look at past history, they would know that imposing more taxes during an economic disaster will only hurt (not help) the economy.

[SmallTownMarm]

10:35 AM on 07/14/2011

If the wealthy who get all of the breaks would put money INTO the economy, it might be OK. BUT THEY DO NOT. They hold it. They spend it on luxury items and investments to suit themselves, not the country in which they live. Those who run companies that produce goods and services figure that they can have an even HIGHER profit if they move the production of those goods and services to third world countries where the cost of living is low and they can pay employees lower wages, SO THE RICH KEEP GETTING RICHER, the POOR SAY POOR and the rich complain that the working class and the poor are a burden. THEN ENSLAVE ALL OF US. It's what you want to do.

[bigdaddycarl7]

12:15 PM on 06/29/2011

our fore feathers must be turning over . nothing is getting done for the AMERICANS ... the white house must be in another country...

[dannywanny]

01:44 PM on 06/22/2011

Cutting taxes for the top 1% was supposed to create jobs. Where are they? After the tax cuts unemployment soared, yet Republicans still cling to that idea. So much for conservative logic.

[BN68]

07:55 AM on 07/05/2011

I own a small company. Due in large part to the Bush Tax Cuts I took my company from 3 people to 12. I could use 2 more salesmen now but I'm worried that if tax rates go back up it will kill any recovery and I'd have to downsize. The 47% who pay no taxes yet absorb the benefits of others' work are killing this country.

[larry rodgers]

05:08 PM on 07/06/2011

how bout we take those 47% and put them on an island somewhere and just forget about them. lol. i'm willing to bet your 'small' company makes money in some way from those 47%. get a grip!

[MaryMay]

06:29 PM on 06/13/2011

THANK YOU to the "roughly 200 'Patriotic Millionaires' that recently wrote a letter to Congressional Republicans asking that their taxes be raised to help deficit reduction, rather than relying alone on cuts in government spending."

You are the ones who deserve life's blessings.

[4thefree]

12:01 AM on 06/30/2011

I find this very hard to believe. Sounds like another ploy from the Left.

[BN68]

07:57 AM on 07/05/2011

Don't believe it. The 200 "Patriotic Millionaires" want EVERYONE else's taxes raised as they are afraid that only theirs will be raised. They have a mechanism right now to send money into the government if they really want to. They don't.

[maryids]

05:35 PM on 06/13/2011

This is absolutely ridiculous, here the Millionaires of the world are telling the Republicans to raise their taxes so that the economy will hopefully get back to normal and yet they still ignore, what is wrong with this picture, and quit blaming OBAMA, BUSH has been the worst president next to NIXON, why was BUSH not impeached for starting the wars, ruining the economy and putting anybody out of business who spoke against him, he should give his money up for the tragedy that he has put the United States in and oh don't forget that he knew THAT THE TERRORIST were in our country because he was riding around in AIR FORCE ONE with their kids protecting them but not the people of the UNITED STATES, what is wrong with this picture.
Because of BUSH we are where we are right now, but we should not be in this predicatment.
THE REPUBLICANS HAVE TO QUIT BEING A............................

[4thefree]

12:04 AM on 06/30/2011

What rantings! When Bush was president, we were in 2 wars; now, under Obama, we are involved in 3 wars.

[structurequity]

03:37 PM on 06/13/2011

damming indictment of a way of business that favors the haves over the have nots and increases the chasm of equity.

[BN68]

07:58 AM on 07/05/2011

Share the work and the risk and there would be no "chasm of equity", whatever that is.

[larry rodgers]

05:20 PM on 07/06/2011

spoken like a true southerner...whatever that is. LMAO

[corte33]

01:00 PM on 06/13/2011

It appears more than enough is not enough for the wealthy.

[4thefree]

12:08 AM on 06/30/2011

If they earned it; they have the right to keep it! I'm sick of hearing about this redistribution of wealth. This is Bo's dream; to change America. If this keeps up, we'll wind up like Greece. Everyone has the same opportunity to make something of themselves. Why do people with less think the government has the right to take from someone else and give it to them?