got tonkaed wrote:you could argue if we dont allow the tax cuts to expire we will be servicing more than 100 percent of the GDP in debt by 2050 as well. I think to some degree the argument that higher tax bracket rates are too high is a bit of an absurd assumption. In much of the world and in much of american history (should someone in a history department not failed me miserably) taxation rates are higher if not much more so than what americans pay.
From an ideological standpoint, when the issue at hand seems to be the destruction of a middle class so to speak, the cure perhaps is misplaced by trying to continue tax cuts for people who are not actually in the danger zone so to speak.
C'mon Tonk. Are you trying to say the "rich" don't pay enough in taxes, and that "the little man" gets hurt by tax cuts?
I've thrown these stats out a few times, its certainly relevant to reiterate them. (note that these are 2005 #'s)
The top 1% of wage earners in the U.S. (those evil rich people), pay 39.38% of the entire tax bill.
The top 5% pay 59.67%
The top 10% pay 70.30%
The top 25% pay 85.99%
The top 50% pay 96.93%
So what's that leave?
The
bottom 50% of all wage earners in the U.S. pay just 3.07% of federal income taxes collected.
Do those people in that bottom 50% own businesses? Are they CEO's of companies? Are they providing gainful employment to people?
No, no, and no.
When higher taxes are levied against corporations and employers, that leaves less revenue to pass on to their employees in terms of higher wages, and/or the highering new employees. It also leaves less revenue that would be put back into the economy with the purchasing of goods and services, and investments.
Here's a little tidbit. Lower taxes (coupled with controlled spending) generate more federal revenue.
Dan Mitchell of the Cato Institute (
http://www.cato.org ) presented data from dozens of countries over decades, which proved beyond doubt, again and again, that the theory works in practice. Low tax rates lead to faster growth and higher revenues. In the USA under Reagan, in the UK under Lawson, in Russia and China more recently, and lately in a host of countries, especially in central Europe, low taxes and flat taxes have been proven to raise growth and raise tax revenues.