LJWorld.com weblogs Loyal Opposition
We Are Tax Laggards.
There is a rumor running around this blog space and in certain left leaning circles that US revenue is down. Right. The argument goes on that it is down because of the “Bush Tax Cuts”. Is that assertion accurate?
I looked up government data on the topic. It seems that total federal income from income taxes in the last year of the Bush administration was 1.4T. In the first year of the Obama administration, it was 1.05T and last year it was about 1.1T. By the by, back in 2000 it was 1.2T (not inflation adjusted).
There have been no federal income tax cuts since back in Mr. Bush's time. The recent federal revenue decline could, therefore, not be the result of tax cuts. Perhaps it is the result of the downturn in the economy. If that is accurate our left leaning friends want to raise everybody’s taxes to recover revenue lost because we collectively have less income or are unemployed. We might also note that since 2007, we have collectively lost 15% of our net worth.
Now I do not believe that the top 5% or so has shared that experience but the rest of us have. Apparently our left leaning friends do not care! They still want to tax us more. Wow, aren’t they nice.