Raising Rates Won't Touch Tax Dodgers

Michael Medved

11/15/2011 2:50:37 PM - Michael Medved

 

Democrats demand higher tax rates to make sure the rich pay their fair share, but never acknowledge that simply raising rates wouldn’t reach wealthy households that currently use loopholes to avoid taxes.

 

Raising the top marginal rate from 35 percent even to 70 percent wouldn’t impact individuals or corporations that currently pay nothing–70 percent of nothing is still nothing. It’s important to remember that most top earners do pay more than their share: the top 1 percent of taxpayers earn 20 percent of Adjusted Gross Income, but shoulder 38 percent of the total income tax burden, paying much higher rates than the middle class. The way to get more from that tiny minority of the rich who currently pay little or nothing is to close loopholes and simplify a maddeningly complex tax system that defies common sense and distorts the economy.