by Jim Edsall
MISCONCEPTION 1: Tax revenues are down because the rich don’t pay enough.
FACT: Tax revenues are down because 46% of Americans pay NO federal income tax
The biggest reason that government revenues are relatively low compared to GDP recently is NOT that the tax rate on the rich is “only” 35%. It is because Bush got so progressive with his tax cuts that 46% of Americans now pay NO federal income taxes:
Yes, all who are employed pay payroll taxes (“FICA” toward Medicare and Social Continue reading