While much has been made of 2001 and 2003 tax legislation, much less attention has been paid to the hidden “Bush Tax.”

While much has been made of 2001 and 2003 tax legislation, much less attention has been paid to the hidden “Bush Tax.”

The administration points to an average tax cut of over $1,000 under the Jobs and Growth Act of 2003. The Tax Policy Center estimates an average cut of $1,217 per tax return from the 2001 and 2003 tax law changes. Most families, however, would receive less since the average is pulled higher by the large tax break received by upper income households – a household earning $1 million would receive a $30,000 tax break from the 2003 legislation. (So, for example, for every millionaire, there would have to be 29 people getting no tax break to average $1,000 per person.)

This tax policy, unfortunately, comes with a high hidden burden. As of Dec. 11, 2003, the national debt was $6.9 trillion. This is about a $1 trillion increase since the beginning of the Bush administration. With a US population of 293 million people, this translates to an increase in the public debt by over $4,100 per person. This equates to an increase in the average future tax liability that must eventually be paid off by the American people.

Over the next ten years, from 2004-2013, under currently policy, we can expect an additional $5.9 trillion debt, which translates to an additional $2,000 per year/per person debt!

By not dealing with the problem now, this tax burden will be passed onto taxpayers in the future – potentially saddling future generations with overwhelming levels of debt. The administration is thus leaving a legacy of a higher tax burden – the “Bush Tax” – for years to come.