Economy: The Middle Class Need a Real Tax Cut On October 4th Bush signed into law the Working Families Tax Relief Act of 2004 (PDF)
Proponents argue that this bill will provide tax relief to the middle class. An analysis by the Center on Budget and Policy Priorities notes that under the bill:

• Households in the top 20 percent of the income spectrum will receive 70 percent of the tax-cut benefits in 2005. The top 10 percent of households will receive 47 percent of the tax-cut benefits.

• In contrast, households in the middle 20 percent of the income spectrum will receive 9 percent of the tax-cut benefits, a peculiar outcome for a “middle-class” tax-cut bill.

• In dollar terms, the top fifth of households will receive an average tax cut of $1,317 in 2005 from the legislation, while the average tax cut for the middle fifth of households will be $162.

• The largest tax cuts in dollar terms go to households with incomes between $200,000 and $500,000; they will receive an average tax cut of $2,390 in 2005. This is due, in part, to the provision to extend relief from the Alternative Minimum Tax, which is of greatest value to households in this income range.

In addition, the cbpp noted that only 1.3% of small business owners are in the top tax bracket that this legislation will benefit most.

Also, as noted by economist Mickey Hepner the middle class of America face a higher marginal tax rate then do millionaires. As Dr. Hepner points out, Americans earning $30,000-$70,000 face a marginal tax rate (combining both income and payroll tax) of 40.3%, while millionaires pay a marginal rate of 37.9%.
  ¶ 8:12 PM