To say “Taxes are Too Low” is very unpopular statement to make, there is a lacking in critical thinking when we fail to examine the actual numbers, as we become deaf to reason through immersion in sound bites. So let’s take a look at some comparison, both to ourselves historically, and to other countries.Some Points to Consider:
1. As a percentage of GDP, taxes are at their lowest in 60 years, weighing in at 14.8%. During Reagan’s tenure, taxes accounted for 18.2% of GDP.
2. After the many adjustments allowed by the tax code, the richest 400 Americans paid an effective tax rate of 18.11%, down from 26.38% in 1992 (a sharp drop!).
3. The least taxed of the wealthiest 400 paid a tax rate of less than 10% (could this be a sign of what is coming next?)
4. Looking at the major nations of the World, the percent of GDP that corporations pay is not just low, but at the bottom at 1.8%. Again, after adjustments made by the tax code, corporations pay far lower than the published rate. What you see is not what you get.
Discussion Questions:
1. Is there any proof that the Bush tax cuts created jobs?
2. Is America in fact a welcoming place to corporations when it comes to tax rates?
3. Before we talk about raising taxes, should we be sealing up tax loopholes first?