From the "Picture is worth 1,000 Words Department":

From "The Myth of Spending Cuts for the Rich, Tax Cuts for the Poor," by Brian Riedl, published by the Heritage Foundation:
During the 2005 budget reconciliation debate, critics trotted out the tired old myth that Republicans were cutting spending for the poor to pay for tax cuts for the rich. Many commentators accepted this as truth and repeated it, including Washington Post columnist E. J. Dionne, who accused the Republicans of passing a “cut-from-the-poor, give-to-the-rich budget.”[1]
However, the facts simply do not support these overheated claims. Rather than reduce entitlement spending, the budget reconciliation bill merely reduced its projected five-year growth rate from 39 percent to 38 percent. Furthermore, the “additional” tax cuts were nearly all extensions of existing tax provisions that would soon have expired.
More broadly, the accusation that poor families are shouldering more of the tax burden while receiving less of the spending is empirically false. From 1979 through 2003, the total federal tax burden on the highest-earning quintile (one-fifth or 20 percent) of Americans—who earn 52 percent of all income—rose from 56 percent to 66 percent of all taxes. Their share of individual income taxes jumped from 65 percent to 85 percent.[2] On the spending side, antipoverty spending has leaped from 9.1 percent of all federal spending in 1990 to a record 16.3 percent in 2004.[3]
0 Comments:
Post a Comment
<< Home