Originally Published: May 14, 2015 6 a.m.
According to the IRS tax rate tables, there has only been an increase of the taxable income levels for the six tax brackets. This amounts to tax cuts for some in the six brackets. However, in 2013 an additional tax bracket of 39.6 percent was levied on the wealthy, which is a tax increase. Hence, there have been no tax cuts for the wealthy as Mr. Lynne claims. Again, from the IRS data, the top 10 percent of the income earners pay 70 percent of the federal income taxes while the bottom 47 percent pay nothing! The only fair tax is a flat tax as the definition of a fair tax is equitable to all parties.
It is the investments of the wealthy, businesses, and corporations that create jobs and new products. Hence, the economy grows from the top down as the lower income levels have little to nothing to invest. This obvious certainty escapes the Democrats. Also, our corporations, except for GE and GM that are subsidized by Obama, have the highest tax rate of the first world countries. These high tax rates increase the cost of products and result in a reduced employment. This is a larger burden to the lower income levels. I thought the Liberals were for the lower income levels. As an example, R. Reagan tax cuts, the highest tax rate went from 70 to 28 percent and produced a growth in tax revenue of 75 percent in eight years.
Our economy during that time was booming. The tax cut for corporations produced an increase of tax revenue that even Obama acknowledged. He still favored tax a tax increase as he said, "to spread the wealth." How can there be income equality over the range of jobs from labors, to blue collar, to technician, to bio-chemists, and alike?
Obama and the Democrats have demonstrated over the last six years that they do not understand how to grow the economy and Obama's foreign policies or lack thereof, are a disaster.