Myth #3: Since the Bush tax cuts of 2003 “the rich” have not paid their fair share of federal income tax.
President Obama and Democrat leaders in Congress have decided that income tax rates for “the rich,” those earning more than $200,000, must be increased.
One of their justifications is the claim that at current rates these taxpayers are paying “less than their fair share.” But they always assert “the wealthy” aren’t paying their fair share. When asked how much the wealthy should pay their answer is always the same:
Obviously, “fair” has no definition. But we thought it would be interesting to see just what portion of the total those being targeted for a tax hike actually do pay.
The above-$200,000 group includes only 3.1% of all taxpayers. In 2007 they paid 54.6% of all income tax revenue collected by the government, the highest in history. The 2007 percentage was almost ten points higher than the highest of the Clinton years.
As we reported here most of the taxpayers in the over-$200,000 bracket are small business, the employers who usually create most of the new jobs that lead America out of recessions. Obama and the Democrats should have to explain how they think a tax increase on these businesses would help create more jobs.