Six ways the rich really do get richer
2. Tax breaks are good – especially if you’re rich
As we said in How the Price of Milk Might Lower Your 2012 Taxes, inflation-indexed tax brackets and exemptions translate to lower taxes for all taxpayers. But if you’re a single filer with taxable income of $50,000, you’ll only save $95 in 2012 over 2011. A couple filing a joint return with taxable income of $450,000 will pay $732 less. Granted, the wealthier couple also paid a lot more in income taxes, but when you consider the amount of money that results from tax breaks, you’re talking Mercedes payment vs. cell phone bill.
Bush’s tax cuts gave a 2-child family earning $1 million an extra $86,722 – or Harvard tuition, room, board, and an iMac G5 for both kids. A 2-child family earning $50,000 gets $2,050 -or 1/5 the cost of public college for one kid.