The Rich Need To Pay More Taxes!
The fables told to gullible voters and the uninformed by President Obama that the rich got a tax holiday under George W. Bush is bunk.
Let’s take a look at the numbers. The share of the tax burden paid by the top 20% of households by income distribution actually increased. Those with average pretax incomes of $248, 400 increased significantly between 2000, Bill Clinton’s last year as President, and 2006 the last year in which data is available.
The Obama administration is set to increase taxes on the upper income people even more. He is trying to sell it as a retribution for the big breaks they allegedly got from Bush at the expense of the poorer folks. (Poor folks do not pay taxes)
The top 20% of households paid a record 86.3% of all taxes in 2006 versus 81.2% under Clinton. Hmmm to be “fair” the top 20% should only pay 20% and so forth…not almost 90%.
If the Democrats raise the tax burden they kill the golden goose. The bottom 20% of income earners saw their share of income taxes drop from minus 1.6% to minus 2.8% in 2006 (these numbers are negative because many in the lower quintile pay no income taxes, but, get money from child and other tax credits.)
If people claim the 5.1% increase in taxes for high earners was due to an increase in their incomes…well, that is wrong. The top 20% saw pretax income rise from 54.8% of the total in 2000 to 55.7% in 2006. A 0.9 percentage point increase. The top 10% share of income increased from 40.6% to 41.6% mainly due to a large number of low income tax payers being removed from the tax rolls.
For over one hundred years every time tax rates increase the tax revenue into Washington decreases. Every time tax rates decrease tax revenue increases. If you want less of something then simply tax it more. Duh!
Like the guy who went into the doctor and said…when I raise my arm it hurts..what should I do? Don’t do that! If they want more tax money in don’t raise taxes! Don’t do that.