Posts tagged taxes
CHART: Taxes Soaring Past Highest Level Ever.
Well! There are a number of problems with this chart, so let’s tackle them in order.
1. The Y axis is tax revenue as a percentage of Gross Domestic Product, right? In truth, I don’t know. “Tax Burden” seems to be a wholly made-up term with no basis in reality. But it’s at least partially based on revenue, which is the most illogical possible methodology for determining the relative rate of taxation because it incorporates the distorting impact of economic performance.
The Heritage Foundation understands this, and also how to lie with statistics. The problem is that they aren’t nearly as good at lying with statistics as I am.
2. Nominal tax rates at a fixed percentage will necessarily generate more revenue in positive economic periods. This is because bad economic times trigger a variety of tax breaks, most notably loss carry-forwards, and typically come coupled with a precipitous decline in capital gains revenues as markets crash. That’s why there’s a big collapse in the 2005-2010 frame.
3. Note how the chart begins in 1975? This is because it marked the end of large declines in nominal tax rates for high-wage-earners as the post-WWII, post-Great-Society tax rates were rolled back. I’m sure whatever fantastical composite “Tax Burden” represents, but I’m sure it was larger “in US history” when top wage-earners were paying 80-90% of gross income.
4. Why no annotation for that bump in 85-90 from the Reagan tax increases?
Mayor Rybak reacts positively to stadium plan, sees irony in proposed LGA cuts | MinnPost
“I have noted the irony when I’m at the Capitol, and people have pounded on me about the massive cuts they’re about to make to the city and then lean on me about, ‘When are you going to lead in building a statewide [sports] facility?’ ” the mayor said.
“There’s an irony that the city has been the single-largest leader in building sports facilities, and we generate $400 million more in sales and property taxes than we get back in LGA,” Rybak said. “And yet the idea is to make a massive cut to the city and to lead the stadium debate.”
The state contributed no money to Target Field, which is funded with a Hennepin County sales tax. The state provided limited funds after the city rescued Target Center, and it provided no initial funding for the Metrodome, which was paid for via city taxes, too.
While he said he “will be at the table,” as the Vikings debate goes forward, “The city of Minneapolis cannot lead any effort. We can be a supportive partner. It’s unlikely we would lead.”
Irony indeed.
Interestingly enough, if we are to compare this to a chart comparing the net worth of people in the United States, this isn’t all that surprising:
20% of the population controlled 93% of the nation’s wealth in 2007. The top 1% controlled 42.7% alone. The remaining 80% of the country only earned 7%. Of course the rich will pay a significantly larger portion of our nation’s tax revenues, especially with income inequality such as it is today.
Yet he wants to spend even more and is determined to foist the entire bill on Americans making $250,000 a year or more. The rich, Obama insists, aren’t paying their “fair share.” This by itself seems odd given that the top 1% of Americans pay 40% of all federal income taxes; the next 9% of income earners pay another 30%. So the top 10% pays 70% of the taxes; the bottom 40% pays close to nothing. This does indeed seem unfair—to the rich.
Dinesh D’souza is on about Barack Obama “strange” things Obama has said, but then says this himself. Poor people don’t pay much in taxes…what a travesty to the rich! Does anyone else think the person who is “strange” in this situation might be the guy who empathizes with the Sherriff of Nottingham?
(via robot-heart-politics)
