August 5, 2011

Congratulations, Class Warriors

By Randall Hoven
Class warriors got what they wished for in the first year of the Obama presidency.  Now the 2009 tax return numbers are out, and I can update you on the class wars I wrote about last year. I wrote then, "Tax figures for 2009 are not yet available.  I suspect they will show the same pattern: loss of federal revenue due to loss of income at the higher levels." Well, now tax figure for 2009 are available, and yes, they do show that same pattern. All numbers below are based on the latest IRS data, specifically Table 1.1.  (Note: Table 1.1 is for all tax returns, not just the taxable ones.)  The comparisons are between the years 2007 and 2009, capturing the depth of the Great Recession. The main reason federal revenues were down was that personal incomes were down.  Total adjusted gross incomes (AGI) less deficits declined $1.1 trillion, or 12%.  However, due to our progressive income tax, the percentage decline in taxes collected was even greater: 22%. You...(Read Full Article)