Paul Caron provides a link to a CBPP study that concludes (brace yourself) tax cuts given to the rich actually result in the rich having more money. This is the kind of thing that masquerades as news in an election year:
CBPP: Bush Tax Cuts Have Made Tax Code Less Progressive, Delivered Windfall to Rich
Center on Budget and Policy Priorities: Bush Tax Cuts Have Provided Extremely Large Benefits to Wealthiest Americans Over Last Nine Years:
The tax cuts first enacted under President Bush in 2001 and 2003 have made the tax code less progressive and delivered a large windfall to the highest-income taxpayers. Tax Policy Center estimates for the years 2004 to 2012 (the years for which TPC provides data that are comparable from year to year) give us a sense of the cumulative effect of these tax cuts:
- The average tax cut that people making over $1 million received exceeded $110,000 in each of the last nine years — for a total of more than $1 million over this period.
- The tax cuts made the tax system less progressive. In each of the nine years from 2004 through 2012, the tax cuts increased the after-tax income of the highest-income taxpayers by a far larger percentage than they did for middle- and low-income taxpayers. For example, in 2010, the year in which all of the Bush income and estate tax cuts were fully phased in, they increased the after-tax income of people making over $1 million by more than 7.3%, but increased the after-tax income of the middle 20% of households by just 2.8%.
At a time of pressing fiscal problems and growing income inequality, continuing such large windfalls for the highest-income taxpayers is unaffordable.
The U.S. income tax system is already the most progressive income tax system in the civilized world (the bottom 50% don’t pay any income taxes at all), but, as I have pointed out ad nauseum in my previous posts, no amount of progressivity is progressive enough for the left wing wealth snatchers. I give you my permission to ignore the CBPP “study.” It sheds about as much light on the issue of taxation and who bears the burden of funding the federal government as a firefly sheds on a black hole.