time for tax fairness, all right
Whether it’s called “tax fairness,” “economic populism” or whatever, politicians are eager to show they’re in touch with the common man. So we’ve seen a plethora of tax plans that seek to make the “rich” pay their “fair share.” This is nonsense of the highest sort — but popular all the same.
New data from the Tax Foundation and the IRS show just how nonsensical it is. In 2005, the latest full year for data, the top 1% of earners accounted for 21.2% of all income, but paid 39.4% of all federal taxes. The top 5% earned 35.8% of all income and paid 60% of the taxes. That’s right: The top 5% paid more in income taxes than the remaining 95% combined.
Go back to 1980 — the dawn of the Reagan era — and the top 1% paid just 19% of all taxes and the top 5% just 37%. It is an irrefutable fact, therefore, that taxes are more progressive (rich pay more, in Democrat-speak) than ever. And it happened with Republican presidents holding office in 19 of 27 years, during a period when, paradoxically, tax rates on the highest incomes fell.
Consider all the freebies that Hillary is promising voters. If vast majorities pay a pittance of the federal tab, our system becomes perverted to the point that people who do nothing can simply vote to take the wealth of those who do something.
Whether it’s called “tax fairness,” “economic populism” or whatever, politicians are eager to show they’re in touch with the common man. So we’ve seen a plethora of tax plans that seek to make the “rich” pay their “fair share.” This is nonsense of the highest sort — but popular all the same.