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To: Blood of Tyrants
except of course that this article is obfuscating the whole issue by only considering income taxes as the example. I don't know the exact figures, but I think that of all federal revenue collected about 35-40% is income taxes. Another 30% of federal revenue comes from payroll taxes. Payroll taxes fall entirely on the non-rich, if you make past a certain amount you pay zero payroll taxes.

We should all understand that when you cut income tax rates from our current rates that this will cause a supply side boon to the economy, meaning that the economy will grow more rapidly than it otherwise would and that the federal guv will collect more revenue than it otherwise would. This happened in the 1980's and in all previous large income taxes we've had. Even Alice Rivlin, the democrats' top expert on budget matters, said that this happened in the 1980's.

Cutting payroll taxes may be a good idea, but it will also most likely result in a decline in revenue collected by the government. So, we never hear talk about cutting payroll taxes. The result of this is that many middle income people have to pay a higher portion of their income in taxes than many upper income people.

17 posted on 08/05/2002 8:48:37 AM PDT by Red Jones
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To: Red Jones
"...if you make past a certain amount, you pay zero payroll taxes."

You may have just mis-spoke, but you will have paid payroll taxes on all income earned up to that point, so you did pay the payroll tax. In fact, you paid more payroll tax than the majority of working Americans just to get to that point.

20 posted on 08/05/2002 9:10:05 AM PDT by wcbtinman
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