The Rich Paid More Taxes Due to the Reagan and Bush 43 Tax Cuts
You’re gonna think the math on that makes no sense. “How in the world can you cut people’s taxes and they ended up paying more?” It’s very simple. Let me go back. Here’s a Wall Street Journal piece, July of 2008. Bush tax cuts raised taxes on the rich hugely. “Washington is teeing up ‘the rich’ for a big tax hike next year, as a way to make them ‘pay their fair share.’ Well, the latest IRS data have arrived on who paid what share of income taxes in 2006…” Now, remember, the data we’ve got, 2008, is the most recent data. These numbers gotta be even worse now after two years of Obama.
The 2008 data: The top 1% pay 38% of all income taxes, the top 5% pay 58%, the top 10% pay 70%. That’s in 2008. In 2006 is what this story is about in the Wall Street Journal. The top 10% in income, those earning more than $108,904, paid 71%. Barack Obama says “[T]he latest IRS data have arrived on who paid what share of income taxes in 2006, and it’s going to be hard for the rich to pay any more than they already do. The data show that the 2003 Bush tax cuts caused what may be the biggest increase in tax payments by the rich in American history. [T]he top 1% of taxpayers, those who earn above $388,806, paid 40% of all income taxes in 2006, the highest share in at least 40 years.”
You want to hear another number? I don’t know if this is still true, but this was true back in the eighties. When I first started educating myself on this, and I tell you, when I first started educating myself, the lights that were going on in my head were like miniature explosions. I learned that if you earned — this is in the eighties, and I did not earn $50,000 a year. I wasn’t anywhere close to it. Well, I take that back. No, that’s true. I didn’t earn $50,000 a year until ’88. Anyway, I get sidetracked. If you made $50,000, you were the top 10%. If you earned 50 grand a year or more you were in the top 10%. I know you don’t believe it but it was true.