Here are some facts for consideration:
Tax revenues are UP, not down, since the income tax cuts went into effect. The larger deficit is due to increased spending (mostly war), not decreased revenues.
The Democrats cleverly asked the GAO to evaluate the shift of tax burden based on ALL taxes not just on income tax. Based on just income tax,the only tax effected by the tax cuts, "the rich" ended up paying MORE of the income tax burden (percentage wise) than the "middle class".
At any rate, either way you evaluate the shift in burden, percentage wise, the increase/decrease is less than 2 percent which is roundoff error in these kinds of analyses.
In other words, there is no significant change in "tax burden". The top 1 percent of wage earners still pay 35 percent of the income tax revenue, the top 50 percent pay 96 percent, and the bottom 30 percent of the wage earners pay no income tax at all. You could argue that that's not exactly fair, unless you're a Democrat.("To each according to need, from each according to ability": Karl Marx).
Despite the Democrats mantra, everybody is paying less income tax, the economy has been stimulated, there are more people employed, therefore more people are paying taxes and revenues are up, the rich are still getting screwed and way too many people are getting a free ride.
And it's not a "tax cut for the rich", it's a "tax cut for people who pay taxes". "The rich" get a bigger tax break than the rest of us because they pay way more tax to begin with than the rest of us. And guess what? People who don't pay income taxes don't benefit from income tax cuts at all!
Last edited by Tom G; 08-14-2004 at 04:30 PM..