The National Taxpayers Union Foundation also published a study on the State of the Union on the spending that would be incurred from the projects mentioned. A release on the study is available at http://www.ntu.org/main/press.php?PressID=990&org_name=NTUF . The entire break down is available at :http://www.ntu.org/main/page.php?PageID=143 .
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Factchecking the State of the Union
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It is true that taxes would go up compared with what people pay now should all the tax cuts enacted from 2001 through 2006 be allowed to expire on the schedule Congress originally set. The independent, nonpartisan Tax Policy Center calculates the average increase at $1,713, not much different from Bush's figure.
But the average increase would not be typical. The increase would be far smaller, $828, for those in the middle 20 percent of the income scale, with earnings between $27,465 and $48,165 a year in today's dollars. And of course, the increase would be lower still for those with lower incomes. Even for the next-highest 20 percent, with incomes between $48,165 and $85,706, the increase would be $1,309, still well below Bush's "average" figure. But for the top 1 percent, with incomes over $434,766, the tax increase would be $64,154. That's what pulls up the average to well above what ordinary taxpayers would experience.
And of course, Bush fails to mention that Democrats don't propose allowing all his tax cuts expire and generally propose cuts for "middle class" taxpayers.
Health Coverage for Millions?
The president repeated his call for a tax deduction for those who buy their own health insurance, saying "millions" would gain coverage:
Bush: So I propose ending the bias in the tax code against those who do not get their health insurance through their employer. This one reform would put private coverage within reach for millions, and I call on the Congress to pass it this year.
Actually, there is a lot of uncertainty as to how many would benefit from Bush's proposal, which he also made in last year's State of the Union address. He called for a federal tax deduction of $7,500 for individuals and $15,000 for families who either pay for their own health insurance or get coverage through their employers. The cost of employer-provided health benefits would be taxed as income (a change from current law), and those with employer-sponsored plans that cost more than the deduction would be taxed on the difference. The proposal would give a tax deduction for the first time to those who buy their own coverage but who are not self-employed.
Discuss