Tax cut plans and Black America?

What will the Bush tax cut plan mean to Black America?

The question is being asked by many.

The issse at hand is a straight forward proposition; Will Bush's proposed $1.6 trillion dollar tax cut benefit the majority of the nation's 35 million African-Americans?

If so, how?

In order to have a clearer grasp of the potential economic benefit the Bush Tax Cut Plan will have on African-Americans we must develop a greater appreciation for the economic stratification that exists across family, class and gender lines.

Part III of the paper begins to explores specific issues that have arisen in the course of the debates regarding it impact on African-Americans.

Part I: Key Provisions fo the

The Bush Tax Cut Plan

Tax Rates -- Reduces the number of tax brackets for personal income taxes from five to four. Marginal tax rates pegged at 39.6%, 36%, 31%, 28% and 15%, would be re-structured to 33%, 25%, 15% and 10%.

Estate Tax -- Would gradually eliminate the estate tax on all money and property transferred to heirs by 2009.

Marriage Penalty Tax -- Would create a deduction for a two-income family allowing a 10% deduction for the first $30,000 of the lower earning spouses income by 2006.

Child Tax Credit -- Would gradually increase the $500 child tax credit to $1000 by 2006 and raised the adusted gross income limit for eligible married couples filing jointly to $200,000 to $100,000.

Charitable Contribution -- Extends the deduction to taxpayers who do not itemize, and raises the cap on corporate giving.

Education Savings -- Expands the contribution limit for education savings from $500 to $5000 per child.