Tuesday, September 20, 2011

Progressive Tax System

With the media flooded with news and commentary regarding the progressive tax system, it is imperative that the trained eye maintain a careful watch on the facts.   Here is a table from the Tax Policy Center summarizing the average tax rates paid by quin tiles of US income earners.  Contrary to what Mr. Buffet may think or read, and what Obama accepts from Buffet as fact, the empirical data suggests otherwise.  


If you can remember only one fact, make it this one: The middle class (middle quintile) pays 14.1 percent of its income in federal taxes, while the rich (top tenth of one percent of the population) pay 30.4 percent.


Let this serve a lesson:  even "positive" economics can be misused either as a mistake or a lie.


Obama Gets the Numbers Wrong In His Tax Plan
Huffington Post






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