boring tax stuff
Rich on the CBO tax report:
Everybody is paying less in taxes under the new tax laws. But the high income tax payers are accounting for a higher portion of total income tax receipts. It has to be one of two things. Either there are more people in the top 20%, or the top 20% is recording more income. In other words, we’re creating wealth.
That conclusion doesn’t logically follow, and I’m going to use this as an excuse to try to give an explanation for the ramifications of the Bush tax cuts and the CBO report on their effects.
Rich seems to overlook that we have a tax structure in brackets — taxes for everyone can decrease across the board while the “share” still increases and decreases for different brackets. Which is precisely what happened, as we see in the breakdown by quintile: