FRONT PAGE CONTRIBUTOR
Adding a dose of reality to the KnownFact of “tax cuts for the rich” and an increase in the “wealth gap”
Members of the Democrat Congress are dusting off their handy rubber stamps (or unwrapping new ones, inscribed with the new Presidential motto, “Vero Possumus”) in preparation for the round of tax hikes their assumed President-in-Waiting is promising to send down the pipe next Spring in the name of “making the rich pay their fair share.”
Not to let real facts get in the way of their red-headed stepsibling KnownFacts™, but the latest tax data from the IRS have been released and, as a Wall Street Journal editorial says today, “it’s going to be hard for the rich to pay any more than they already do.”
According to the National Center for Policy Analysis, which released a summary of new tax information this morning, “The new IRS data show that the 2003 Bush tax cuts caused what may be the biggest increase in tax payments by the rich in American history.”
According to the IRS data, the top 1 percent of taxpayers paid 40 percent of all income taxes in 2006, the highest share in at least 40 years.
Further, the top 10 percent of income-earners paid 71 percent, and the top 50 percent in income paid 97.1 percent.
On the other end of the spectrum, Americans with an income below the median paid a record-low 2.9 percent of all income taxes. So much for the fabled unbearable tax burden on the lower-middle and lower classes, from whom the “rich,” who refuse to “pay their fair share,” are so wantonly stealing.
More very revealing information is available to the open-minded below the fold.
According to the WSJ, “We also know from income mobility data that a very large percentage in the top 1 percent are “new rich,” not inheritors of fortunes.” So much for the rich getting richer, the poor getting poorer, and the lines between “class” in America becoming impenetrable ceilings and floors.
“But the most amazing part of this story,” continue the WSJ‘s editors, “is the leap in the number of Americans who declared adjusted gross income of more than $1 million from 2003 to 2006″
According to the IRS data, the number of millionaires in the U.S. nearly doubled in the three years after the Bush tax cuts, from 181,000 to 354,000. The Left might call this the “rich getting richer,” but the economically honest would more likely refer to this as the hard-working getting over the hump and creating more wealth for themselves and for others.
Unfortunately for the newly (and already) “rich,” another result of Bush tax policy was a doubling in the amount of taxes paid by millionaire households, from $136 billion in 2003 to $274 billion in 2006 — an increase in tax payments that, according to the WSJ, explain the very rapid reduction in the budget deficit to 1.9 percent of gross domestic product (GDP) in 2006 from 3.5 percent in 2003.”
As we’ve known for quite some time now, “the idea that [the Bush tax cuts have] been a giveaway to the rich is a figment of the left’s imagination,” the WSJ editorial concludes. “No President has ever plied more money from the rich than George W. Bush did with his 2003 tax cuts.”