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Lies, Damn Lies and

Macroman Wrote: Jul 16, 2012 5:35 AM
Some comments below want clarification of why tax rates have fallen because of recession. Mr. Ransom gives the answer but a little too briefly. If we had a proportional tax, where tax revenue equals a fixed fraction (the tax rate) times income, tax rates would not change when income changes. However, we have a progressive system, where the tax rate itself rises with your income. If your income falls, then your tax rate falls, too - automatically, with no action by government. The average tax rate for the economy is an income-weighted average of the individual rates. If everyone's income falls, everyone's individual tax rate falls, too, bringing down the average.
drrisk2 Wrote: Jul 16, 2012 7:30 AM

"Some comments below want clarification of why tax rates have fallen because of recession."

You obviously have NO knowledge on this subject. Tax RATES only fall if they are legislated by Congress. Income tax COLLECTIONS fall during a recession because income falls. Do yourself a favor and go to your nearest community college and take a course in economics instead of demonstrating what an ignoramus you are.

meerbock Wrote: Jul 16, 2012 11:09 PM
Macroman is dead right. If in the last filing period I made enough money to be in a higher bracket and paid that tax, and this year I do NOT make as much money and fall into a lower bracket, I still pay all of my taxes due, but have paid less.

Perhaps it is BECAUSE you have only gone to a Community College that this simple equivalency has escaped your understanding.

Americans can afford to pay more in taxes, say liberals, after the Congressional Budget Office released a report that shows that for 2009 “federal tax rates had fallen to the lowest in 30 years,” at 17.4 percent of income according to – just in time to correspond with President Barack Obama being sworn in.

The Scarecrow couldn’t make the waters recede, begin to heal the earth or make the Red Sea part, but he apparently fixed the tax tables for us while we were sleeping.     

And FactCheck then reminds us- breathlessly- that taxes “fell again in...

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