Actually, they’re not. The Congressional Budget Office recently released a report showing the distribution of income in 2010. It takes a couple of years to compile all the data so more recent tax years are not yet available.
The overall trend of tax rates is downward, contrary to what you might be hearing elsewhere. The average person saw their tax rate drop nearly three percent over the past forty years. No one, not a single person in this country, is paying a higher tax rate than they were forty years ago. Every single tax bracket is lower today. The lowest income earners have seen a larger drop than the top one percent but even the top one percent is paying slightly less in taxes.
On Thursday, Representative Paul Ryan’s budget passed the House. The bill contains $5 trillion in tax cuts. Why? Because, according to Mr. Ryan and many other Republicans, taxes are too damn high! Mr. Ryan has not seen this most recent CBO report, apparently. Thankfully, his budget has no chance of passing the Senate.
Taxes are going to go up and probably sooner than later. This will, of course, be good news for Republicans as they will claim it’s President Obama expanding his Robin Hood programs. In reality, Republicans should again look at the CBO report.
Part of the reason taxes are so low at present is because of the crisis era tax cuts imposed in 2009. These tax cuts aided in the nation’s recovery. These tax cuts are also set to begin expiring later this year. So, even without taking any action, tax rates are going to go up soon. And this will be President Obama’s fault. Even so, just remember, your tax rates are at an all time low. And that too was President Obama’s fault.
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