It requires a lot of money to run a great nation. Most of us take for granted the programs, services and amenities provided by our government. In addition, we are an increasingly cynical population. Our newspapers and TV news lift ratings by focusing on the "failures" of government -- rather than the success.

After months of wrangling, Congress delivered a big tax break to Americans, some $350 billion worth of tax cuts to be exact, including relief for investors, married couples and parents. Bush signed the legislation May 28th. InfoImagination argues this is an illusionary benefit to America.

As illustrated in the example, the family will now pay $45 a year for the services provided by the federal government. Think about it... this includes national defense, homeland security, education, highways and interstates, health benefits, social security, food and drug monitoring, and the list goes on and on. There is no way this family, paying $45 per year, is paying their fair share. The Jobs and Growth Act of 2003 is an illusion. We are passing costs on to future generations.

If we do the simple math, the tax bill for the family in 2002 (an estimated $1,178) was about 2.9 percent of their total income. Anyone who goes out to dinner tips the wait staff somewhere between 10-15 percent. Is it too much to "tip" our federal government three percent for all the services we get in return?

For this family, the tax reduction works out to about $100 per month. Sure, it helps. Yet the result is a greater federal deficit. We are pushing debt to the kids of this country. It's not good business -- but history shows Bush failed in his business endeavors.

Focus on the Wealthy
But let's not get carried away here. The $1,000 savings for the millions of families of four across the nation do not add up to the more than $350 billion cost of this tax cut. We all know Bush isn't doing this for the "common" man. The rich are the ones to really gain by this legislation. For a household with a gross income of over $1,000,000 (what our example family of four would make in a lifetime), they will find an estimated $90,000 returned to their pockets...

This is "voodoo" economics -- the same failed approach taken by the Reagan administration in the 80s. We know the results of that misguided policy. The economy was crushed by soaring federal debt, states and local governments nearly collapsed, our inner cities exploded in drug trade, violent crime and relentless frustration. But don't trust us. We've included a commentary from Warren Buffet, a well-trusted expert on fiscal policy.

Buffett Slams Dividend Tax Cut
May 20, 2003: 10:41 AM EDT

One of world's richest calls plan 'voodoo economics,' says it puts burden on low-income families.

NEW YORK (CNN/Money) - Renewing his criticism of the dividend tax cut laid out by the Senate last week, Berkshire Hathaway's Warren Buffett called the proposal "voodoo economics" that uses "Enron-style accounting."

The Senate's plan for dividends to be 50 percent tax free in 2003, 100 percent tax free in 2004 through 2006 and then face the full tax in 2007 would "further tilt the tax scales toward the rich," Buffett wrote in an opinion piece in the Washington Post.

Buffett posed a hypothetical situation in which Berkshire Hathaway, which does not currently pay a dividend, paid $1 billion in dividends next year.

Through his 31 percent ownership of the company, Buffett said he would receive an additional $310 million in income that would reduce his tax rate from about 30 percent to 3 percent, while his office secretary would still have a tax rate of about 30 percent.

"The 3 percent overall federal tax rate I would pay -- if a Berkshire dividend were to be tax free -- seems a bit light," Buffett wrote.

Instead of the Senate's tax cut plan, Buffett proposed that it provide tax reductions to those who need and will spend the money in the form of a Social Security tax "holiday" or a tax rebate to lower-income people.

"Putting $1,000 in the pockets of 310,000 families with urgent needs is going to provide far more stimulus to the economy than putting the same $310 million in my pockets," Buffett added.

He closed the piece by saying that the "government can't deliver a free lunch to the country as a whole. It can, however, determine who pays for lunch. And last week the Senate handed the bill to the wrong party."

Warren Buffett sits on the board of the Washington Post Co (WPO: up $3.91 to $715.01, Research, Estimates), and Berkshire Hathaway (BRK.B: up $2.00 to $2451.00, Research, Estimates) owns a stake in the newspaper publisher.