In recent months, Google has justifiably suffered heavy criticism for selectively acting as internet…
CFIF on Twitter CFIF on YouTube
Google and Other Politicized Organizations Target 2nd Amendment and Consumer Choice

In recent months, Google has justifiably suffered heavy criticism for selectively acting as internet gatekeeper, deciding what Americans can and cannot view online.  Countless examples exist when the liberal Silicon Valley giant leveraged its  market power to censor along ideological lines, including:  banning the conservative blog The New York Conservative, hosted on Google Blogger, for opining on the trial of terrorist Khalid Sheikh Mohammed;  demoting pro-Brexit/Euroskeptic websites by pushing them down in search results;  excluding Donald Trump from “presidential candidates” search;  and blocking free speech social network Gab from the Google Play Store, alleging violations of the company’s hate speech policy.

The latest revelation of Google’s partisan bias…[more]

September 19, 2018 • 10:27 pm

Liberty Update

CFIFs latest news, commentary and alerts delivered to your inbox.
Jester's CourtroomLegal tales stranger than stranger than fiction: Ridiculous and sometimes funny lawsuits plaguing our courts.
The Rich Don't Pay Their "Fair Share" of Taxes ... They Pay Too Much Print
By Timothy H. Lee
Wednesday, April 11 2018
[T]he wealthiest 40% of American households essentially pay the entirety of American income taxes, which themselves account for the largest source of federal government revenues.

Do wealthier Americans pay their fair share in taxes? 

The straightforward answer is "no," although for a very different reason than most people probably assume. 

The reality is that the rich pay more than their fair share by any reasonable definition of "fair." 

And here's a new kicker:  Following comprehensive tax cut and reform legislation passed by Congress and signed into law by President Trump, wealthier Americans will pay an even higher proportion of the nation's taxes. 

That's the main takeaway of a new report from the left-leaning Tax Policy Center, comparing income tax estimates for 2017 and 2018. 

The report offers additional value by not only highlighting income taxes paid by each of five taxpayer quintiles, but also the income earned by each quintile. 

So let's first talk about the notorious "1%." 

American households falling within that category, which includes filers earning above approximately $730,000, will pay a staggering 43% of all income taxes received by the federal government.  That compares with the 38% proportion they paid in 2017. 

Meanwhile, that top 1% earns just 16% of the nation's total income. In other words, their share of income taxes paid is nearly three times their share of income earned. 

Is that fair? 

Now expand the relevant segment to the top 5% (households earning $310,000 or higher).  They pay 62.9% of American income taxes, yet only earn 28.6% of American income.  And that 62.9% of income taxes paid stands higher than the 59% for which they accounted in 2017. 

So much for the "tax cuts for the rich" slogan affixed to the tax reform bill by Nancy Pelosi, et al.   

Broaden the examination to the top quintile, covering American households earning above approximately $150,000.  They pay an astounding 87% share of income taxes received by the federal government, whereas last year they paid approximately 84%.  Meanwhile, that quintile's share of national income stands at just 52.2%. 

Now let's look at the other end of the income spectrum. 

The bottom quintile of households earns 4.4% of the nation's income, but accounts for a negative 2.5% of income taxes paid.  It's a negative number because those filers receive payments for such things as the earned income tax credit.  For 2017, by comparison, that number was a smaller 2.1%. 

How about the bottom two quintiles, accounting for income from $0 to $48,000?  They earn 13.1% of the nation's income, but a negative 4.5% of income taxes (again because of benefits received through the income tax regime).  In 2017, that number was a smaller -3.2%, so the tax reform legislation resulted in more payments received, not taxes paid. 

The entire bottom 60% of households, which covers income from $0 to $86,000, accounts for 27.3% of the nation's income, but negative 0.2% of income taxes paid. 

Accordingly, the wealthiest 40% of American households essentially pay the entirety of American income taxes, which themselves account for the largest source of federal government revenues. 

So the next time you hear someone claim that "the rich don't pay their fair share," respond that they're right - but only because their share of income taxes paid dwarfs their share of income earned. 

That's not the end of the positive news, however. 

The Congressional Budget Office (CBO), hardly a redoubt of supply-side conservatives, has raised its forecast of American economic growth as a consequence of the tax cuts, as summarized by The Wall Street Journal with a nice reference to our friend Dan Clifton: 

You probably didn't read anywhere else that CBO says the tax cut will help the economy grow faster - to 3.3% this year and 2.4% in 2019.  The last time the economy grew that fast was 2005.  This produces more revenues than CBO previously estimated, and Dan Clifton of Strategas Research Partners calculates that by CBO's estimates the tax cut has already paid for about 30% of its static revenue losses. 

So the tax cuts are not only boosting economic growth, but are making our income tax regime more steeply progressive, not less. 

That's a result even class warriors and Occupy Wall Street should welcome. 

Question of the Week   
Which one of the following asked “Which office do I go to to get my reputation back?”
More Questions
Quote of the Day   
 
"Christine Blasey Ford's lawyer has announced that Ms. Ford will not testify until the FBI completes yet another investigation of Judge Brett Kavanaugh that everyone knows will never happen.It was already highly unlikely she was ever going to testify; this is a convenient excuse, a stalling game. But it is more than the usual cheap political stunt. It's vicious, ugly, and more than slightly sadistic…[more]
 
 
—Roger L. Simon, PJ Media Co-Founder and CEO Emeritus
— Roger L. Simon, PJ Media Co-Founder and CEO Emeritus
 
Liberty Poll   

Which one of the following U.S. Senators do you believe behaved most dishonorably during the Senate Judiciary Committee hearings on the confirmation of Judge Brett Kavanaugh to the Supreme Court?