Tapsearch Com EditorBruce Bartlett on taxes
April 11th 2007 01:35
Bruce Bartlett has a very informative column today about the tax burden, and how the rich disproportionately pay it. It's a common point to make, but there are some valid statistics I hadn't heard before.
I do take some issue with how this is worded, though:
He's very honest about the way he compiled the statistic, and I think it's worth pointing out that this isn't even whether people paid more than they received in government services; it's whether they paid anything at all. That said, people at the very bottom of the ladder get more money than they pay (from EITC), and as you move up people pay more and more. $40,000 happens to be the cutoff where the two cancel.
People making quite a bit less than $40,000 pay something, so there's no reason to imply they're not contributing. It's not a useful number.
And this is encouraging:
However, I think he might be too optimistic about this:
I would guess that (A) those people don't use too many government services and (B) the ones who do don't want a cut in their government services.
By Robert VerBruggen
I do take some issue with how this is worded, though:
Those with incomes below $40,000 paid no federal income taxes at all in the aggregate; the positive liability for those who paid anything was more than offset by tax rebates from the Earned Income Tax Credit for many more who paid nothing. In total, the EITC put $41 billion into the pockets of low-income workers in 2005, 91 percent of it being paid to those with no income tax liability. However, according to the Tax Foundation, three-fifths of Americans believe that it is wrong for anyone to pay no taxes at all, that everyone should pay something to finance the government.
He's very honest about the way he compiled the statistic, and I think it's worth pointing out that this isn't even whether people paid more than they received in government services; it's whether they paid anything at all. That said, people at the very bottom of the ladder get more money than they pay (from EITC), and as you move up people pay more and more. $40,000 happens to be the cutoff where the two cancel.
People making quite a bit less than $40,000 pay something, so there's no reason to imply they're not contributing. It's not a useful number.
And this is encouraging:
By better than a 2 to 1 margin, taxpayers would be willing to give up major tax deductions, such as that for mortgage interest or state and local taxes, in order to get lower income tax rates.
However, I think he might be too optimistic about this:
About a third of taxpayers would support a reduction in government services in order to achieve further tax cuts; just eight percent favor bigger government financed with higher taxes.
I would guess that (A) those people don't use too many government services and (B) the ones who do don't want a cut in their government services.
By Robert VerBruggen
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