Liberal politicians love raising taxes. But do higher taxes on the wealthy really help people who are struggling paycheck to paycheck?
Doc Thompson took a look at some key facts about taxes, the economy and the federal budget. The “1 percent” became a rallying cry during the Occupy Wall Street movement calling for wealthy people to pay more in taxes, but according to the IRS, people in the top 1 percent for income pay 35 percent of all federal income tax. The top 10 percent of American income-earners pay nearly 70 percent of all federal income tax.
A common accusation is that tax cuts contribute to the national debt, but federal revenue has actually grown under every president that introduced tax cuts, Doc asserted.
The economy really gets a boost when the top income-earners get tax breaks because they create job opportunities for everyone else. “It gives them more incentive to buy bigger things, putting more money right back into the economy,” Doc explained.