Crush Liberalism

Wealthy pay more in taxes under Bush tax cuts

You all are painfully aware that Democrats are functional economic illiterates.  Every time you turn around, you hear some leftist halfwit claim that Bush gave tax cuts to the vile rich, and thus the rich are undertaxed.

Ignoring the reality that the top 1% of income earners already pay over 39% of all income taxes and that the top 50% of income earners pay a whopping 97% of all income taxes, there’s another fundamental flaw in leftards’ line of thinking: it just ain’t freakin’ true!  From the WSJ:

Every Democrat running for President wants to raise taxes on “the rich,” but they will have to do something miraculous to outtax President Bush. Based on the latest available tax data, no Administration in modern history has done more to pry tax revenue from the wealthy.

Last week the Congressional Budget Office joined the IRS in releasing tax numbers for 2005, and part of the news is that the richest 1% paid about 39% of all income taxes that year. The richest 5% paid a tad less than 60%, and the richest 10% paid 70%. These tax shares are all up substantially since 1990, and even somewhat since 2000. Meanwhile, Americans with an income below the median — half of all households — paid a mere 3% of all income taxes in 2005. The richest 1.3 million tax-filers — those Americans with adjusted gross incomes of more than $365,000 in 2005 — paid more income tax than all of the 66 million American tax filers below the median in income. Ten times more.
…
Notably, however, the share of taxes paid by the top 1% has kept climbing this decade — to 39.4% in 2005, from 37.4% in 2000. The share paid by the top 5% has increased even more rapidly. In other words, despite the tax reductions of 2001 and 2003, the rich saw their share of taxes paid rise at a faster rate than their share of income. How could this be?

One explanation is that the Bush tax cuts reduced the income tax liability of middle and lower income households by more proportionately than the rich. The average family of four with an income of $40,000 saw its income tax liability fall by about $2,052 a year from the 2001 and 2003 tax cuts.

This part is sure to piss off life’s losers:

The IRS statistics also tell a more complicated economic story than the media claim. First, America continues to be a society of upward income mobility. Over the past decade, millions of Americans have joined the once highly exclusive club of six- and seven-figure earners. Some 304,000 Americans earned $1 million or more in annual income in 2005, compared to 110,000 in 1996 and 176,000 in 2000. Because there is no cap on the top income share, this increase in millionaires pushes the top income (and taxes paid) share higher. The number of millionaire households in net worth also increased to nine million in 2006, up from six million in 2001, according to TNS, a global market research firm.

Liberals decry this as proof of a new “gilded age.” But we’d say these gains are a sign that more Americans are joining the ranks of the truly affluent. More than 13 million American households, or about one in 10, had an income of more than $100,000 a year in 2005. This is the kind of upward mobility that a dynamic society should want because it means that incomes aren’t stagnant and opportunity continues to exist.

Well, slap my chiseled tush and call me Sally!  You mean that we don’t live in an oppressive society that only affords select people the opportunity to succeed with the help of big government?  Who knew?

The icing on the cake:

The amount of capital gains declared on tax forms has doubled since the tax rate was cut to 15% from 20% in 2003, which has also contributed to more Americans being “rich.” Dividend income has also increased by at least 50% since that rate was cut to 15% from nearly 40% in 2003. So part of the income gains of the rich are simply a result of assets that have been converted into taxable income — in part because of lower tax rates.

We hate to break up the media’s egalitarian chorus with these details, but facts are facts. If Democrats really want to soak the rich, they’ll keep tax rates where they are, or, better, lower them some more.

See, tax cuts are NOT a zero-sum game, people!  I’m trying to determine if liberals are that economically stupid, that deceitful, or some combination thereof.

December 18, 2007 - Posted by crushliberalism | economic ignorance, taxes