Considering Politics, Culture And Nonsense Since 2009

Sunday, April 19, 2009

Bush Tax Cuts Cont'd

In response to my post a few days ago, a dear friend (and accomplished economics student) writes:
Mr. Fleischer fails to mention that the marginal income tax rate for those in the highest-earning bracket fell from 39.6% to 35% due to Bush's tax cuts. (http://www.taxfoundation.org/publications/printer/151.html) That those in the lowest bracket paid 5% less, as Mr. Fleischer reminds us, is hardly reassuring when we consider that these are the same people who benefit most greatly from social programs funded by the income taxes of the extremely wealthy, whose taxes fell precipitously and by almost the same deficit. (It's the lowest tax rate for the wealthy in decades.)

Also, I have to take issue with Mr. Fleischer's using shares of total tax receipts, as many could be easily misled by these figures. He cites that the share of taxes paid by the top 10% went from 67.8% in 2001 to 72.8% in 2005. Since their tax rates were lowered during the same term, this figure is due in no part to Bush's taxes policy, but to the unprecedented rise in personal income by those same top 10%. (www.census.gov)

It's the same story. The rich are got richer and the poor got poorer. Mr. Fleischer's deceptive use of statistics just puts the icing on the cake.

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