Somehow, Republicans believe that instead of funding jobs programs to improve the lot of Main Street America, they should gut Main Street while providing huge tax cuts for billionaires. Someone with a $1 billion income gets a $100,000 million tax cut under the Ryan budget. They justify it with the lie that the very rich pay a disproportionately high share of the taxes. The latest data discredits their lie.
New data released by the IRS reveals that, over a period of 12 years, tax rates for the richest 400 Americans were effectively cut in half. In 1995, the richest 400 Americans paid, on average, 29.93% of their income in federal taxes. In 2007, the last year for which the IRS has released data, the richest 400 Americans paid just 16.63%.
In 1995, just 12 of the 400 richest Americans paid an effective tax rat of between zero and 15%. By 2007, that number skyrocketed to over 150. The massive reduction is due to both Bush-era tax reductions for the wealthy and the aggressive exploitation of tax dodges and shelters. (For details, check out this report from BusinessWeek.)
As their tax rates plummeted, the total income of the richest 400 Americans skyrocketed. In 1995, the combined income of the richest 400 was just over $6 billion. By 2007, the combined income of the richest 400 was almost $23 billion.
If the richest 400 Americans simply paid the same effective rate in 2007 as they did in 1995, the government would have collected over $3 billion in additional revenue… [emphasis added]
Inserted from <Think Progress>
Now you tell me, how can it be anything other than class warfare when income of the super rich almost quadruples, but their tax rate is almost cut in half, during a time when middle class earnings stagnated?
I am in the lowest tax bracket, so a return to 1995 rates would increase my taxes by 50%. It would cause me real pain, but I’d gladly endure it if the rates were also raised on the super rich and their loopholes eliminated.
10 Responses to “Details of Class Warfare”
Sorry, the comment form is closed at this time.
I say we go back to the rates in place in 1960 when Ike made his exit speech and the corrupting influence of the military/industrial complex and along with that rate lets hit hyper deflation in the cost of goods and services.
But there is no re-do is there so it is war that Cantor and Ryan and apparently their CinC Boehner will not stop then it is war they will get.
Fight them using the wepon they are using against you. MONEY. Every dollar you lose to them remove two from the economy. Kill you cell phone, TV,movie time etc. limit your water and utility use. IF consumerism is still 70% of the need to make the economy work; use less, spend less, drive less. Get to know your neighbors and work as a unit using the damn soil beneath your feet. Fight back refuse to use and save your money in liquid form not in stocks and bonds let them play in their own sand box alone with you in it.
The crash of 29 involved less than 15% of Americans invested in the market, the other 85% had their savings stolen by the bankers greed.
You may as well write your 401’s off and any other thing you can not remove from that market because since Reagan and Bush there was never any intent to let you have what you saved anyway. At least in this day and age unlike the 30’s your savings is insured. Until they kill the FDIC.
TWO WORDS: PUSH BACK!
Mark, I would love to see the to[p marginal tax rate return to Eisenhower’s and keep it there until we can cut it, while keeping revenues above spending to retire the debt.
But if they don’t get to keep the tax cuts the poor bastards will have to forgo that fifth or sixth vacation home.
Patty, that’s exactly how they see it.
Tom, I very much enjoy your articles! For the first time in my life, I’m GLAD I don’t have some big chunk of change sitting in the market in a 401K! They can take my house, but that’s about it. My distrust for the Repugs has skyrocketed into something I can only describe as hatred. I don’t hate much in this world. But I hate them, and the Kochs, and all our Koch-sucking Teabagger Conservatives that want to finalize our transition to Fascism. I had to look up Fascism a few years ago when everyone accused Obama of being one. Makes me sick as I watch those same accusers drag my country kicking and screaming off the Facist cliff!
Welcome Lisa 🙂
Thank you so much. You are right to distrust Republicans. Hate is too strong a word for me go apply to people, but I hate the mindset that it’s OK to trash our nation to establish one party rule under a super-rich elite.
30 of the top 50 wealthiest members of Congress are Democrats. The richest is Kolh, but he won’t admit it or he’d have to give up his seat, so he lies. I’ve been linked to this site by a facebook friend, I always find her position to be the foaming mouth liberal banter. I suggest you look closer at the democrats you are coveting, you just might find that “talk” and “walk” don’t always add up. Many other members, mostly democrats, put their wives down as owners of the assets. Look at the wives’ income as well.
Or is reality a little too much for your investment in this site?
http://innovation.cq.com/media/50richest2010/?ref=rc
First, I went back to the raw data from your link and counted 28, not 30. So what? The important thing is not what they own, but who owns them.
Second, personal attacks are not permitted on this blog. Because of your seeming inability to behave in a civil manner, your comments are on permanent moderation.
Talk about a strawman! The point of the article is that the effective tax rate for the richest 400 Americans has been declining. What the hell is your point, Run?
Nameless, I don’t think he has one.