Hannity wrong on tax cuts

On July 27, ABC Radio host Sean Hannity, in conversation with Teamsters president James P. Hoffa, falsely claimed that "[e]very American taxpayer got back the same amount of money" as a result of the 2001 and 2003 tax cuts, adding that "[e]very American that pays federal income tax got their $600." In fact, the tax cuts averaged substantially less than $600 annually (pdf) for almost half of American taxpayers, with high-income taxpayers receiving many times that.

From the July 27 edition of ABC Radio Networks' nationally syndicated broadcast of The Sean Hannity Show:

HANNITY: This is propaganda. It's not true what you're saying. Every American taxpayer got back the same amount of money. ... Every American that pays federal income tax got their $600, Jim.

A June 21 report (pdf) by the Tax Policy Center ( “a joint venture of the Urban Institute and Brookings Institution” that “provides timely, accessible analysis and facts about tax policy to policymakers, journalists, citizens, and researchers” ) found the following:

  • The average annual tax cut for people earning less than $10,000, who constitute 14.2 percent of American taxpayers, was $19.

  • The average annual tax cut for people earning between $10,000 and $20,000, who constitute 18.4 percent of American taxpayers, was $192.

  • The average annual tax cut for people earning between $20,000 and $30,000, who constitute 14.2 percent of American taxpayers, was $532.

In contrast, the report also found that people earning in excess of $1 million per year received an average tax cut of $136,398. "[T]he numbers presented above indicate that a majority of American households will be made worse off by the tax cuts," the Tax Policy Center reported, “because the tax cuts will ultimately have to be financed.”