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The Heritage Foundation, huh? Joel Send a noteboard - 03/09/2009 03:01:17 PM
Lots of charts based on government data to click on, via the link.....but as for the question of the rich paying a greater portion of incomes taxes after the Bush cuts:

Myth #10: The Bush tax cuts were tilted toward the rich.
Fact: The rich are now shouldering even more of the income tax burden.

Popular mythology also suggests that the 2001 and 2003 tax cuts shifted more of the tax burden toward the poor. While high-income households did save more in actual dollars than low-income households, they did so because low-income house­holds pay so little in income taxes in the first place. The same 1 percent tax cut will save more dollars for a millionaire than it will for a middle-class worker simply because the millionaire paid more taxes before the tax cut.

In 2000, the top 60 percent of taxpayers paid 100 percent of all income taxes. The bottom 40 percent collectively paid no income taxes. Lawmakers writing the 2001 tax cuts faced quite a challenge in giving the bulk of the income tax savings to a population that was already paying no income taxes.

Rather than exclude these Americans, lawmak­ers used the tax code to subsidize them. (Some economists would say this made that group's col­lective tax burden negative.)First, lawmakers low­ered the initial tax brackets from 15 percent to 10 percent and then expanded the refundable child tax credit, which, along with the refundable earned income tax credit (EITC), reduced the typical low-income tax burden to well below zero. As a result, the U.S. Treasury now mails tax "refunds" to a large proportion of these Americans that exceed the amounts of tax that they actually paid. All in all, the number of tax filers with zero or negative income tax liability rose from 30 million to 40 million, or about 30 percent of all tax filers.[17] The remaining 70 percent of tax filers received lower income tax rates, lower investment taxes, and lower estate taxes from the 2001 legislation.

Consequently, from 2000 to 2004, the share of all individual income taxes paid by the bottom 40 per­cent dropped from zero percent to –4 percent, mean­ing that the average family in those quintiles received a subsidy from the IRS. (See Chart 6.) By contrast, the share paid by the top quintile of households (by income) increased from 81 percent to 85 percent.

Expanding the data to include all federal taxes, the share paid by the top quintile edged up from 66.6 percent in 2000 to 67.1 percent in 2004, while the bottom 40 percent's share dipped from 5.9 per­cent to 5.4 percent. Clearly, the tax cuts have led to the rich shouldering more of the income tax burden and the poor shouldering less.[18 ]

I liked Myth #9 better:

"Myth #9: The Bush tax cuts have not helped the economy.
Fact: The economy responded strongly to the 2003 tax cuts. "

That explains the multiple recessions. One wonders why, given the great successes of Bushs tax policy so well documented by the ever objective Heritage Foundation, the economy got Obama elected. Myth #7 is good, too, in conjunction with the quotation of #10:

Myth #7: Reversing the upper-income tax cuts would raise substantial revenues.
Fact: The low-income tax cuts reduced revenues the most.

Makes sense; since, as you note, those people aren't paying taxes anyway, obviously tax cuts for them reduced revenue the most. Those rebate checks referenced above were not, unlike the accelerated reduction in upper class taxes, annual affairs; there was one when the changes were made in Bushs first term and a later one as a part of his stimulus package. As opposed to being the gift that keeps on giving through 2011, I believe it is. As someone who managed to collect the EIC in 2004 but made FAR too much last year I can tell you that 1) it's never going to suck billions from revenue; the most you can get out of is around $350, last I checked and 2) because, again, last I checked, the most you can earn and still qualify for it is $15,000 we're never going to get a lot revenue from people collecting it anyway. Which is also why changing their tax rate from 15% to 10% is rather revenue neutral; 10% of 0 is still 0.

I'm very sorry, but what the Heritage Foundation unsurprisingly seems to be saying isn't "we need to cut taxes" but "we need to raise taxes on the poor so we can cut taxes on the rich. " I won't put words in your mouth (though you did quote them) but I still maintain that's not only absurd, but abusive. I am terribly sorry, however, that old commie George Bush insisted on expanding the tax credit for the working poors children; perhaps if Republican wins in 2012 he can provide a more Swiftian solution....

The working poor aren't the reason your taxes are so high, the non-working wealthy are, and part of the problem here seems to be you can't decide if you're among their numbers or among the middle class, which affects what kind of tax policy you prefer. Lemme help you out: As long as you have to show up for work every day to put food on your table, you're not one of them.
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For Europeans who don't understand why Americans are against ObamaCare - 03/09/2009 04:24:35 AM 1255 Views
I'd be happy to tax top "earners" more and suffer Europes economic "collapse. " - 03/09/2009 04:30:31 AM 725 Views
The US will never work with socialism. - 03/09/2009 04:40:21 AM 794 Views
Re: The US will never work with socialism. - 03/09/2009 04:58:47 AM 779 Views
I don't think the mistrust of the government is really all that overblown - 03/09/2009 05:04:34 AM 713 Views
It's advanced beyond what it was during the Revolution, I think. - 03/09/2009 05:18:22 AM 751 Views
I would say it's grown with the government - 03/09/2009 05:23:52 AM 732 Views
Re: I don't think the mistrust of the government is really all that overblown - 04/09/2009 03:30:23 AM 676 Views
If I lived in France I wouldn't trust the Government either. - 04/09/2009 03:44:55 AM 743 Views
*laughs* the point is taken. *NM* - 04/09/2009 04:24:07 AM 472 Views
Re: The US will never work with socialism. - 04/09/2009 03:28:24 AM 835 Views
How much more can we really tax the wealthy?? - 03/09/2009 04:41:14 AM 636 Views
Sadly, I think going back to the Clinton rates would help - 03/09/2009 04:42:54 AM 615 Views
I'm ok with that....not super excited....but ok with it - 03/09/2009 04:57:32 AM 636 Views
A lot; before Reagans "reforms" we already taxed them less than any other industrialized state did. - 03/09/2009 05:06:00 AM 753 Views
I'm in the lower-middle class tax bracket - 03/09/2009 05:13:39 AM 680 Views
It's both, IMHO. - 03/09/2009 05:29:41 AM 603 Views
I hear a lot of socialism coming from you..... - 03/09/2009 05:19:08 AM 617 Views
Re: I hear a lot of socialism coming from you..... - 03/09/2009 05:40:32 AM 700 Views
Nice non-answer answer..... - 03/09/2009 05:52:04 AM 712 Views
You want detailed answers that require detailed data I don't have. - 03/09/2009 06:06:55 AM 766 Views
Here are some facts and analyses..... - 03/09/2009 02:40:22 PM 820 Views
The Heritage Foundation, huh? - 03/09/2009 03:01:17 PM 825 Views
The non-working wealthy? Please quantify..... - 03/09/2009 03:31:58 PM 785 Views
Paris Hilton? - 04/09/2009 03:43:19 AM 691 Views
You're so full of shit on this issue I don't know where to begin. - 04/09/2009 03:15:55 AM 800 Views
Re: You're so full of shit on this issue I don't know where to begin. - 04/09/2009 03:59:21 AM 885 Views
Less than 200 people were said to be US persons with Swiss accounts - 04/09/2009 04:16:24 AM 689 Views
And yet account for many millions of dollars; what does that say...? - 04/09/2009 04:21:57 AM 681 Views
It's statistically insignificant and your hyperbole is reminiscent of screaming guests on CNN. - 04/09/2009 02:07:31 PM 616 Views
Well, look at this way: - 04/09/2009 02:24:03 PM 745 Views
That's not a solution. - 05/09/2009 02:39:12 AM 750 Views
The Soviets weren't socialist, or even communist, so it's a false comparison. - 05/09/2009 03:09:06 AM 695 Views
Okay, now you've just gone into Kool-aid drinking territory. - 05/09/2009 04:32:07 AM 816 Views
Communist THEORY is predicated on democratic participation at every level,totally absent in the USSR - 05/09/2009 04:55:00 AM 936 Views
FINALLY!!! - 07/09/2009 10:22:53 AM 726 Views
Ever heard of the 20-80 rule? - 04/09/2009 04:28:54 AM 610 Views
Yes, and 90% of people are idiots. - 05/09/2009 02:41:35 AM 915 Views
Re: Yes, and 90% of people are idiots. - 07/09/2009 10:09:30 AM 733 Views
Top earners? Please define.....what income and how much more? *NM* - 03/09/2009 04:52:25 AM 488 Views
That would be open to definition, and should change with inflation. - 03/09/2009 05:13:02 AM 866 Views
What is your justification for taking over 50% of anyone's income? - 03/09/2009 05:28:22 AM 808 Views
That's a good example of why I say the rate has to be set to cost of living. - 03/09/2009 05:50:16 AM 830 Views
Still no comment on the fact that 40% of Americans don't pay any income taxes? - 03/09/2009 02:32:12 PM 750 Views
To what 40% do you refer? - 03/09/2009 02:42:55 PM 610 Views
Dude, you are not making this easy..... - 03/09/2009 03:38:01 PM 652 Views
No one "gets money from the IRS. " - 04/09/2009 02:55:02 AM 656 Views
Actually with EIC you can get money back that you never paid in. - 04/09/2009 02:56:43 AM 648 Views
It MIGHT be possible with the EIC, but in practice few people get more than they paid. - 04/09/2009 03:43:36 AM 701 Views
I don't know, I've known plenty of people that have gotten more back than they paid in - 04/09/2009 03:46:29 AM 780 Views
A neat trick then. - 04/09/2009 04:09:58 AM 777 Views
To be fair - 04/09/2009 04:50:20 AM 712 Views
Ah, gotcha. - 04/09/2009 04:53:58 AM 727 Views
Yet another example of your ignorance on tax policy. - 04/09/2009 03:19:39 AM 598 Views
The word I notice is "welfare" - 04/09/2009 03:57:01 AM 711 Views
I wouldn't say that's what it means.... - 04/09/2009 04:02:40 AM 718 Views
It's what welfare means to me... - 04/09/2009 04:32:17 AM 726 Views
I was just talking about EIC as a form of welfare, not welfare welfare. *NM* - 04/09/2009 04:45:13 AM 418 Views
yes, I get that now. *NM* - 04/09/2009 05:02:53 AM 404 Views
*NM* - 04/09/2009 05:14:01 AM 399 Views
Not necessarily - 04/09/2009 04:11:41 AM 647 Views
*shrugs* I have a soft heart. *NM* - 04/09/2009 04:30:52 AM 411 Views
It's a credit for people who file a return on income that's been taxed. - 04/09/2009 04:19:57 AM 655 Views
It is only for the WORKING poor, yes. - 04/09/2009 02:12:55 PM 640 Views
Mean it may be, but hardly illegal. - 04/09/2009 02:31:16 PM 669 Views
How does the business benefit? - 04/09/2009 04:54:27 PM 671 Views
I didn't realize you meant literal withholding. - 05/09/2009 03:03:32 AM 691 Views
That's a no-no, Joel - 03/09/2009 07:32:03 AM 653 Views
Europe impresses me for one simple reason: - 03/09/2009 09:21:28 AM 705 Views
No real comments, just 100% agree with you....plus the $12 trillion is terrifying to me. *NM* - 03/09/2009 04:33:39 AM 307 Views
If that scares you, check this out! - 03/09/2009 04:48:56 AM 797 Views
Excellent post - the US government is not capable of running HC..... - 03/09/2009 04:40:19 AM 600 Views
There is one thing the government did right - 03/09/2009 04:41:36 AM 709 Views
The bailout, some of it, was necessary..... - 03/09/2009 04:51:03 AM 711 Views
I still think it was too one sided. - 03/09/2009 05:21:45 AM 744 Views
It depends on your level of cynicism - 03/09/2009 05:38:53 AM 768 Views
when have they ever cut the fat? - 03/09/2009 08:35:36 PM 694 Views
Contrary to popular belief, they are quite good at it - 03/09/2009 09:05:15 PM 721 Views
Well there is only one catch *NM* - 03/09/2009 10:56:00 PM 398 Views
This doesn't make sense to me. - 03/09/2009 08:33:18 AM 697 Views
The key phrase is "should be. " - 03/09/2009 09:38:15 AM 867 Views
Re: The key phrase is "should be. " - 03/09/2009 09:47:39 AM 753 Views
That sounds like a good stop gap to me. - 03/09/2009 09:50:57 AM 762 Views
In fairness, most Europeans don't seem to realize what ObamaCare is. - 03/09/2009 02:34:01 PM 744 Views
What makes you think we do? - 03/09/2009 09:11:06 PM 757 Views
Oh, you don't either. I thought that went without saying. *NM* - 03/09/2009 09:25:54 PM 412 Views
As far as most people I know are concerned, opposition to ObamaCare isn't the issue. - 03/09/2009 11:04:36 PM 835 Views
It's hard not to be horrified with a government as wasteful as ours - 03/09/2009 11:24:59 PM 611 Views
I can understand horror of governments. - 03/09/2009 11:30:23 PM 609 Views
a bit, yes. *NM* - 04/09/2009 04:08:37 AM 428 Views
For Americans who don't understand why Canadians like their public healthcare. - 04/09/2009 04:23:11 AM 722 Views
Correction - 04/09/2009 04:44:32 AM 718 Views
Re: Correction - 04/09/2009 05:05:11 AM 826 Views
In all honesty.... - 04/09/2009 05:18:23 AM 670 Views
Re: In all honesty.... - 04/09/2009 07:19:28 AM 751 Views
Re: Correction - 04/09/2009 05:24:49 PM 679 Views
Re: Correction - 07/09/2009 10:11:45 AM 869 Views
That's a nice theory. - 04/09/2009 02:49:34 PM 732 Views
It's a fact - 04/09/2009 05:21:59 PM 733 Views
Re: It's a fact - 05/09/2009 03:18:39 AM 684 Views

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