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Old 07-12-2005, 03:21 PM   #20
dude1394
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Default RE: Dang Dubya' not so fast you are making fools of a lot of folks!!

Oh I don't know....Granted it's a year old and I don't know what's up this year. But in my laymans understanding the increase of more people not paying any taxes as well as the 10% bracket(I think) caused when it was created a more progressive system. I don't know what the pie chart looks like now.

entrepenaur


Tax Cut Myths Debunked by CBO

From the Congressional Joint Economic Committee:

"A new Congressional Budget Office (CBO) report produced at the request of Congressional Democrats confirms that tax cuts since 2001 increased the share of federal income taxes paid by the highest earners while decreasing the tax share of lower- and middle-income groups. The CBO analysis, Effective Tax Rates Under Current Law, 2001 to 2014, shows that the income tax remains highly progressive, with the top 5 percent of earners paying more than half of all federal income taxes.

Highlights:

* As a result of the tax cuts since 2001, all taxpayers face lower effective federal income tax rates than they would have without the tax cuts.

* While many characterize the CBO report as evidence that the tax cuts shifted the burden of taxation to the middle class, CBO data show precisely the opposite effect. The tax cuts actually made the tax system more progressive. The highest 20 percent of earners now pay a larger share of federal income taxes than they would have without the tax cuts, while the share of income taxes paid by all other income groups fell.

* The overwhelming majority of federal income taxes are paid by the very highest income earners. The top 1% of income earners pays 31.6% of all income taxes, the top 5% pays 51.4%, the top 10% pays 63.5%, and the top 20% of income earners pays 78.4% of all federal income taxes. The bottom four-fifths of income earners pay just over one-fifth of all federal income taxes.

* Some analysts cite total effective federal tax rates, as opposed to effective income tax rates, as the best measure of the effects of the tax cuts across income groups. This method can be misleading because it measures the burden of payroll taxes without accounting for the highly progressive Social Security and Medicare benefits to which payroll taxes are linked."
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