How is that a news story? When income taxes are reduced for everyone and Fica taxes remain steady (and are not applied to earned income above $89,700) then even though income taxes were reduced for everyone the percentages will change.
Donald Luskin covers this topic well in this article.
"A signature campaign issue for John Kerry is the idea that the middle class is being squeezed. A couple months ago he concocted a Middle-Class Misery Index designed to show how bad things are today (and how great they were under the presidency of Democrat Jimmy Carter). In his acceptance speech at the Democratic National Convention, he went so far as to melodramatically warn that George Bush is squeezing so hard that our great middle class is shrinking. That's a lie."
Gail Buckner of Money Matters writes Separating Tax Facts From Tax Fiction
"Dear Readers
I really try to avoid anything that smacks of politics, but I can't help setting the story straight on a popular American myth repeated with increasing frequency in this election year that "The Rich" (whoever "they" are) don't pay their fair share of taxes."
Kevin Hassett writes Getting Recent Economic History Right
"President Bush inherited a recession and acted decisively to end it. But critics argue that the Bush tax cuts were poorly designed to end a recession and that alternative policies would have increased economic growth and job creation. The evaluation of the Bush tax policies is a crucial requirement for rational thought about the President's record. Who is right? Did they help or not? And who has the best plan going forward?"
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