August 21, 2004

"The rich" are paying more now...

Just in case you were actually tempted to believe the Demagogues when they wail about Bush's "tax cuts for the rich," read this piece by Stephen Moore in NRO:

...The Treasury data confirm that the real impact of the tax cuts on the rich has been precisely the opposite of what the CBO study suggests. By resuscitating the economy and spurring a turnaround in income growth, the tax cuts have increased the share paid by the rich. Real income growth has increased significantly since the 2003 tax cuts were passed, increasing at faster than a 6 percent rate in the first two quarters of 2004. With the economy now growing more quickly, we can expect the tax shares paid by high-income groups to increase.

There is another reason to suspect that as the Bush tax cuts continue to kick in, they will increase tax payments by the wealthy. People are much more likely to work harder, engage in entrepreneurial activity, and make investments when the government is confiscating less of the monetary rewards for these activities. When you tax something, you get less of it...

Posted by John Weidner at August 21, 2004 9:12 AM
Weblog by John Weidner