Tuesday, October 30, 2007

Inconvenient Truths

Pete DuPont takes on the mtyhs behind the Democratic tax agenda.

Tax rate decreases actually lead to tax payment increases. Lower tax rates spur economic development, which in turn leads to more tax payments on greater economic activity. Want proof--here is DuPont:
Lower tax rates have be so successful in spurring growth that the percentage of federal income taxes paid by the very wealthy has increased. According to the Treasury Department, the top 1% of income tax filers paid just 19% of income taxes in 1980 (when the top tax rate was 70%), and 36% in 2003, the year the Bush tax cuts took effect (when the top rate became 35%). The top 5% of income taxpayers went from 37% of taxes paid to 56%, and the top 10% from 49% to 68% of taxes paid. And the amount of taxes paid by those earning more than $1 million a year rose to $236 billion in 2005 from $132 billion in 2003, a 78% increase.
Considering the the very rich foot the lion's share of our federal tax bill, increasing the tax rate on wealthy individuals is going to spur them to look for ways to protect their income from taxes, leading to lower tax payments.

But introspection is not the Democrat's strong point--class warfare is about par for the course.