According to recent IRS data, from 2000 to 2006 the income of the 400 richest Americans doubled, but their tax rate fell by a third to only 17.2 percent.
The drop in the tax rate for the richest Americans is due mainly to ex-President Bush’s push to lower the capital gains tax to 15 percent in 2003.
As pointed out in my post Bob Edgar Stresses Poverty, Bush also drastically increased government spending, leaving even more government debt for working class taxpayers to pay since the rich people’s tax rate was decreased. In other words, Bush increased the total amount that the taxpayers have to pay by increasing government spending, but he changed the proportions so that rich people pay less of it while the rest of us pay more of it.
I also ask you to remember that the richest people in America pay less in taxes than their secretaries in percentage of income.
I think those policies of the Bush Administration and the mostly Republican legislature contributed to the current economic crisis. Worse yet, many politicians actually continue to propose the same policies as a solution to the problem. For example, Republican politicians are actually suggesting changing the “stimulus package” to include more Bush-type tax cuts for the rich while eliminating tax credits for the working class.