Let me share with you some of their selected facts. For example, do you think the rich don't pay taxes?
In 2006, the top 20 percent of earners paid 70 percent of all federal taxes. On average, they paid 26 percent of their income to the government. The very richest -- the top 1 percent of taxpayers, with household incomes of over $332,000 -- paid 28 percent of all taxes, with an effective tax rate of 31 percent.I find those numbers stunning. Over a quarter of all federal income taxes are paid by just 1% of earners. To be sure, they can afford it. Over 70% are paid by the top 20% of earners, meaning the bottom four fifths (80%) of the population pays less than 30% of the total taxes. Wow! Tell me we don't have a progressive tax code.
Our new President says he will only raise taxes on people earning over $250,000 a year. It won't work, as the Post points out. First of all, these individuals are paying most of the federal income taxes already. Second, they didn't get affluent by being stupid; raise the rates and they'll figure out ways not to pay taxes. They'll send their money overseas, or invest in tax shelters or decide to earn less and enjoy more leisure time - the choice of the highly taxed European upper classes.
Combining data from two places in this editorial, you easily determine that the top one percent of earners earn 19% of all income and, as noted above, pay 28% of all taxes. We have to be approaching that point in the Laffer Curve where the wealthy decide to earn less in order to pay less.
I wonder if anybody in the Obama administration has ever heard of Arthur Laffer and his famous insight, first drawn on the back of a cocktail napkin? Counterintuitively, you get more tax revenues by cutting tax rates, not by raising them.
