Obama's description of the Bush-era tax cuts. "A surplus became an excuse to transfer wealth to the wealthy," he explained in his Tuesday speech, after earlier saying, "tax cuts alone can't solve all of our economic problems -- especially tax cuts that are targeted to the wealthiest few."

The Bush tax cuts were not targeted to "the wealthiest few." Everyone who paid federal income taxes received a tax cut, with the largest percentage of reductions going to those at the bottom. Last year, a family of four making $40,000 saved an average of $2,053 because of the Bush tax cuts. The tax code became more progressive as the share paid by the top 10% increased to 46.4% from 46% -- and the nation experienced 52 straight months of job growth after the cuts took effect. And since when is giving back some of what people pay in taxes "transferring wealth?"

Consider the IRS data for 2006, the most recent year that such tax data are available and a good year for the economy and "the wealthiest 2%." Roughly 3.8 million filers had adjusted gross incomes above $200,000 in 2006. (That's about 7% of all returns; the data aren't broken down at the $250,000 point.) These people paid about $522 billion in income taxes, or roughly 62% of all federal individual income receipts. The richest 1% -- about 1.65 million filers making above $388,806 -- paid some $408 billion, or 39.9% of all income tax revenues, while earning about 22% of all reported U.S. income.