Today they’re discussing the tax situation as we get closer and closer to December 31st. That’s the date, of course, that the “Bush Tax Cuts” are set to expire.
Everyone I know of agrees that we need to make permanent those cuts to folks making less than $250,000 a year. The question is what to do with the folks making more than that.
A couple of weeks ago I posted on this very same topic. I hinted at it then, I’ll ask it straight up now:
Why are people dead set on raising taxes on “the rich”?
It seems to me there can only be two answers:
- Because we need to raise more revenue in order to reduce the deficit.
- Because it’s only fair that they pay their “share”.
Let’s take the second one first.
WTF are you talking about?
What is “fair share”? What does it mean that someone should pay their fair share. Again, if left to me, it can only mean two things:
- It would be fair if two people paid the same dollar amount.
- It would be fair if two people paid the same percentage amount.
It does NOT strike me as fair that two people not only pay different dollar amounts but that they pay different percentage amounts as well.
Anyway, no one asked me and it IS, in fact, the case that people both pay more dollars and more of a percent.
So, in 1987, the top 1% of income earners paid 24.8 percent of the Federal Income Tax. In 2007, that top 1% paid 40.4 percent of the Federal Income Tax. That’s a 163% increase in 20 years. That seems like a lot to me.
Okay, so we see that the rich are already paying far FAR more than their fair share, so it can’t be #2.
Let’s look at #1; We need to raise revenue to reduce our deficit.
Again, looking at this chart:
We clearly see that no matter WHERE the marginal rate is at, the revenue brought into the US coffers is never above 20% of GDP. EVER.
Raise the rates all you want. Go as high as 90%; heck, even go higher. It won’t matter, the revenue brought in won’t exceed 20% of GDP. So, if you wanna raise revenues, you need to do it by raising the GDP.
And to raise the GDP, you do NOT raise taxes.
So, again, Brad and Britt, “Why do you think we need to raise taxes on the rich?”