Tax Cuts for the Rich?

For at least 30 years, many Senate Democrats and House members have vilified successful Americans with the phrase "tax cuts for the rich." To call the statement a lie, outright, would be slightly inaccurate, because to tell a lie requires a complete sentence.

To call it A TOTAL DECEPTION, however, is completely true. Why? Those Democrats who constantly hammer it home, suggest, a terrible injustice to all others. The deception also suggests that these tax cuts cause lower-income earners, to pay more than they should, even suggesting they pay more as a result of higher earners not paying enough.

This is breathtakingly dishonest, with not a shred of truth to it; it strays so far from the facts, it borders on despicable.

Redistribution of those earning their own money, always goes down, from top taxpayers and upper income payers, to those who pay little or nothing. It never goes up from lower bracket taxpayers to those above them.

Since 1979, the congressional budget office (CBO) has broken down the share of income taxes paid and/or received, by each of America's 5 quintiles.

The top quintile pays a whopping, almost unbelievable, 86% of all income taxes. Add in the 2nd highest quintile - $73,400 and up - those two pay an even more whopping 98.7%

In the aggregate, the lowest quintile, pays zero. In fact, through redistribution, the lowest quintile actually (receives) 3.0% of income taxes paid by those who pay a "final net tax."

The second lowest quintile also receives others' earnings, rather than pay. That quintile receives 0.3 (three-tenths of 1 percent of the amount paid by others).

Tax Cuts For The Rich-The Actual Deception

First of all a tax cut does not give anything to anyone. It reduces a future payment.

In 2003, the largest percentage cut went to the lowest bracket-33%. The smallest cut went to the highest bracket-12%. This benefits the lowest taxpayers the most, by reducing the small amount they paid, with the highest percentage cut.

A taxpayer with a small income whose final tax is $1000 getting a $333 reduction in that payment, gets a very meaningful cut in relation to his small payment, leaving him with a new payment of $667

Those with large incomes, who pay the most, get bumped into 5 higher brackets, on the way up, paying a higher percentage and higher amount on every dollar earned, in each bracket. They get no equivalent reduction, on the way down (when rates are cut). Because top taxpayers have paid such a greater dollar payment, naturally their reduction from a tax cut, results in a larger dollar reduction. Why would any fair-minded person, expect anything else?

This works against all taxpayers in the top two quintiles with taxable income above $69,000. If you're a person who says the rich should pay more, understand you're working against yourself.

The deceivers, after attacking the amount of the reduction, add to the deception, calling the reduction a "payment" to upper income payers which it is not.

A top bracket married couple has a minimum tax payment of $98,416 just by reaching the top bracket. If the couple got the same reduction, as the lowest bracket-33%, they would reduce their future payment by $32,805.

Instead of $32,805 their 12% (actually 11.6% reduction) gives them a reduction of $11,416, leaving them with a final tax payment of $87,000.

A 33% reduction would have left them with a final tax payment of $65,611.

The taxpayer paying the lower tax was paying at a 15% rate and got a 33% cut- more than double the rate he had been paying.

The taxpayer paying the higher tax was paying 39.6% at the time of the 2003 cut and got only a 12% cut. That cut was not even 1/3 of the rate at which he had been paying.

Liberal propaganda strongly suggests that the top taxpayer "got or received" $11,416 and that it was "taken" in part from the $667 taxpayer. Neither of those two things happened in any way.

What the Left actually seeks is massive redistribution. The Left has no interest in proportionate reductions, its only interest is to soak and vilify the rich.

The Left also wants to make a villain of someone's success and hefty final payment of $87,000 and make a victim/hero of someone paying a final amount of $667. The drumbeat is relentless.

Massive Redistribution Via Welfare (Means-Testing) Is Destructive Enough

Redistribution payments of $695 billion a year, through means-tested (Welfare) programs, already soak the rich and the middle class way beyond what it should. Those top 2 quintiles get soaked for billions more through the tax code. They do not need billions more expropriated, through the deceit of class warfare.

As previously mentioned, top taxpayers do not "get or receive" anything from a tax cut, they have a future payment reduced in the year following enactment of the tax cuts, when the IRS prints the new tax rate schedule and withholding guidelines.

The Left reaches fever temperature when future astronomical tax payments become less, by a small percentage. The American public should not be exposed to such deceit at a time when honest facts and figures are so vital to understanding revenues, spending, debt and deficits.

Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at http://conservative-politics-infofind.com

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