The Least, First

400 richest Americans’ incomes doubled under Bush tax cuts; economy collapsed

with 3 comments

clipped from thinkprogress.org Bloomberg reports that, according to recently released IRS data, “the average tax rate paid by the richest 400 Americans fell by a third to 17.2 percent through the first six years of the Bush administration and their average income doubled to $263.3 million.” Much of their income came from capital gains resulting from the Bush tax cuts: The drop from 2001’s tax rate of 22.9 percent was due largely to ex-President George W. Bush’s push to cut tax rates on most capital gains to 15 percent in 2003 Capital gains made up 63 percent of the richest 400 Americans’ adjusted gross income in 2006, or a combined $66.1 billion, according to the data. In all, the 400 wealthiest Americans reported a combined $105.3 billion of adjusted gross income in 2006, the most recent year for which the IRS has data.

Observe the present economy. Like what you see?

Image by yachtfan via Flickr

Certainly the tide has risen for the very wealthy: their fortunes have doubled. But has this “rising tide” lifted “all boats?” Has trickle-down affected your income? Can we say that business has been stimulated?

Perhaps it’s a good time to wonder why tax cuts for the rich did not result in national prosperity as promised.

Mired on the shore in our jonboats, most of us look on as the yachts head for the open sea.

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Tags: rising+tide+lifts+all+boats, economy, prosperity, trickle-down, Reaganomics, Monte Asbury

3 Responses

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1. Good thoughts! I have this hunch that wealthy people aren’t just stopping everything to rack their brains for what to do with their next tax break. Maybe the accountant takes care of it, and just piles it on top of the other investments.

   I like the dream!

   

   Monte

   February 2, 2009 at 9:45 pm

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2. I’d love to see some actual data on what rich people do with their money.

   There is some bizarre fundamental assumption among the denizens of the GOP that people who make a lot of money turn this money around into something that will help the “little people”.

   In some cases, this is no doubt true.

   But mostly, I”m guessing that they’re going to buy more houses, trophy-wives, etc. They may buy some stock in existing companies, some from new stock offerings by that company (which DOES in fact represent new capital), most from other people selling existing stock to take profits (which represents only capital gains for the seller).

   I think what I’d like to see are some saucy and industrious capitalists providing lots of job opportunities, and some strong and well-lead unions fighting tooth-and-nail with them for every penny that comes in the door. ;-)>

   Hey – I can dream…

   

   Joe Hayes

   February 2, 2009 at 12:50 am

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   January 31, 2009 at 6:46 pm

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