The Last Recession and Value of the Tax Cuts.

Historical Effective Federal Tax Rates:
1979 to 2002
March 2005 http://www.cbo.gov/showdoc.cfm?index=6133&sequence=0&from=7.

How effective were the Bush Tax Cuts in providing Tax reductions comparable to the loss of Income between 2001 and 2002? (Thanks to John Irons for the pointer). The Author comes up with Readings:

Lowest Quintile--4
Second Quintile--3.67
Third Quintile--2.4
Fourth Quintile--1.5
Highest Quintile--2.64

The effectiveness of the Tax reduction therefore is:

Lowest Quintile-- 1/4 or 0.25
Second Quintile--1/3.67 or 0.27248
Third Quintile--1/2.4 or 0.4167
Fourth Quintile--1/1.5 or 0.6667
Fifth Quintile--1/2.64 or 0.3788

It stands as obvious the Fourth Quintile was served best by the Bush Tax Cuts. The two bottom Quintiles reclaimed little of the purchasing power lost from reduced Income through reduction of taxation(Remember this is the purchasing power lost by taxation under 2001 Tax rates). The actual gain in purchasing power per Class was:

Lowest Quintile--200/13,800 or 1.45%
Second Quintile--300/29900 or 1.00%
Third Quintile-- 500/43700 or 1.14%
Fourth Quintile-- 600/61700 or 0.97%
Highest Quintile--3600/130000 or 2.77%

Now We find the real Winners are the two Outside Quintiles, though the Lowest Quintile probably did not recognize the difference. The middle Quintiles made actual little gain, but were deceived by the nominal remission. The Highest Quintile made a real and nominal gain, but at what cost? The Clinton Tax rates could put Us in a Government Surplus, instead of a Government Deficit, by 2009 as claimed by Some--the Author believes more like 2011. lgl