Well, it does relate also to the assertion that you have to warp the numbers to put the tax cuts in a good light. The numbers are certainly old. Reliable new numbers are hard to find. Especially if you don’t spend hours looking
Thank you once again. Head pulled out. I’ll forgive you for making me look through that data this time.
To some extent, this is what I am talking about. You cannot concentrate on the rate of increase and then criticize Bush for doing the same thing. It seems to me that the argument is about whether or not the tax system should be more or less progressive. But neither side is willing to discuss how progressive it is now.
Well, not quite. What I am talking about is the bottom 80% (households below $58,400 BTW). For every quintile (not 5%, pervert, a fifth or 20%) below the top the share of income went down. However, their share of the tax base went down even more. Meanwhile, everyone in the top quintile saw their share of income increase while their share of the tax base grew more slowly. That is, everyone’s share of the income changed (lowest quintile to highest: -31%, -22.5%, -14.5%, -10.9%, +20.4%) in the same direction but by a greater percentage than their share of the tax base changed(-47.6%, -33.3%, -25.7%, -17.4%, +17.7%). The obvious trend is continued within the top quintile. The top 10%, 5%, and 1%, saw their income share change (+33%, +48%, +91.4%) by larger amounts than their share of the tax base changed (+28.2%, +40%, +66%). While these numbers are in fact old as you point out, it seems very unlikely that the recent tax cuts did much to this trend. You would have to change the tax rates quite a bit to alter it.
These are still only the rates of change. The fact remains that as of 2000 the top 20% of wage earners paid a larger percentage of the federal tax burden than they earned as a percentage of all income. All of the other quintiles pay less of the tax burden than they earn of the income as percentages. The second highest quintile has always been on the border, it seems. Do you have a good site which suggests that this changed with the tax cuts?
Partly, yes. As long as you don’t conclude from this that everyone else’s share of the tax burden increased unnecessarily. The only groups who saw their share of the tax burden increase also saw their share of income increase. And everyone saw their share of the tax burden change by a lower percentage than the change in their share of the income.
As an aside to this hijack do you have a thought how we might compare this rate of the rate of change? I calculated the ratios between the percentage change in tax share to the percentage change in income share, but I’m not sure I understand what it means.
To reiterate myself, I am not saying that taxes are too progressive or too regressive. I am simply saying that honest people can easily disagree. That is, I think the administration and Franken have a point regarding the tax cuts. Although as Scylla wisely suggested they might both be better regarded as partisan rather than objective reporters of the truth.
Well, I have now had waaaaaaaaaaaaaaaaaaaaaaay too much fun looking at these numbers. “We hatesss it! We hatesss it forever!”