The Facts About the Bush Tax Cuts
27th July 2010
Under George W. Bush’s “tax cuts for the rich” the rich paid more in taxes in 2005 than any time in the prior 20 years. In fact, as the Wall Street Journal noted, thanks to George W. Bush’s tax cuts for the rich, the richest one percent went from paying 25% of all income taxes in 1990 to 39% in 2005. The richest 5% went from paying 44% of all income taxes in 1990 to paying 60% of all income taxes in 2005.
Democrats want to ‘tax the rich’, not because they think it’s more fair (although they will gas on endlessly in that vein), but because they want to discourage not-rich people from trying to become rich – like them. (Most not-rich people don’t know the tax code and don’t realize that rich people don’t pay those ridiculous rates they publish in the newspapers.)
Most rich people, especially those who inherited their money rather than actually earned it, are Democrats. (Of course, there are sufficient tax breaks that rich Democrats don’t suffer all that much. Especially those in public office, as the Obamas and the Clintons can tell you.)
This is why people like Warren Buffet and Bill Gates come out in favor of higher taxes; they realize that, with higher taxes, their relative advantage in terms of wealth is greatly exaggerated. The point is not to have a lot of money, but to have a lot more money than the people around you, so that you get most of the benefits, and can rub the noses of the less-rich in it. There’s less competition for seats in fancy restaurants, for ski chateaux in Aspen, for yacht-slots at the marina, for seats in Rich Class on the airplane when God forbid you might have to fly commercial, etc.
The truth is out there. You just have to run the numbers and follow the money.