tag:blogger.com,1999:blog-1592992209402300549.post1991747519968704648..comments2024-03-29T09:08:47.702-04:00Comments on The Silicon Graybeard: An Economics/Budget IQ Test SiGraybeardhttp://www.blogger.com/profile/00280583031339062059noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1592992209402300549.post-79409380632750749632012-08-13T07:40:39.113-04:002012-08-13T07:40:39.113-04:00You are absolutely right!
That's supposed t...You are absolutely right! <br /><br />That's supposed to say "tax revenues as a percentage of GDP" - to see if folks are aware of Hauser's Law.<br /><br />I'll correct it when I get home. I'll get it right, yet! <br /><br />SiGraybeard @ workAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-45423450312397546802012-08-13T02:05:29.283-04:002012-08-13T02:05:29.283-04:00#3: I was under the impression that tax revenues ...#3: I was under the impression that tax revenues actually increase when taxes are cut, by some small percentage. That isn't true?Reg Thttps://www.blogger.com/profile/14099612693763932005noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-490136834865891532012-08-12T19:01:13.640-04:002012-08-12T19:01:13.640-04:00I re-worded the question to say top and bottom tax...I re-worded the question to say top and bottom tax bracket. My point, of course, is that the "tax cuts for the rich" benefited the lower income brackets the most. In terms of absolute dollars, which is the way some tend to talk, of course the rich had the biggest reduction in dollars. They had to - they had the most dollars in the game. In terms of the percentages, you were able to keep more of your check if you're on the bottom of the income distribution. The US has the most progressive tax system in the world, that is the upper brackets pay the highest burden, as of the date that was written (last year, IIRC).SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-47434237910164120662012-08-12T18:22:46.452-04:002012-08-12T18:22:46.452-04:00Looks like the second bracket got it the best, hav...Looks like the second bracket got it the best, having their rate cut by ~46%. Bottom bracket only went down by 33%. The potential increases (referenced to current rate) are 50% (bottom) and 87% (second).<br /><br />That explanation does make more sense, thanks.Xenoclesnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-35703872360015940892012-08-12T18:08:56.022-04:002012-08-12T18:08:56.022-04:00What that was intended to say was who got the bigg...What that was intended to say was who got the biggest decrease in their tax burden. The lowest income bracket got the biggest decrease in their tax as a percentage of taxes paid. I tend to think in percentages here because it seems the most mathematically honest. I'll have to try to think of a better way to say that.<br /><br /><br />The reference is this, from an article on what happens if those tax rates go back to pre-2002 levels:<br /><br />The current six rate brackets of 10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets with the higher rates of 15%, 28%, 31%, 36% and 39.6% <br /><br />Note that the lowest bracket tax rate goes from 10% to 15%, or a 50% increase in their taxes. The highest bracket goes from 35 to 36.9%, or 5.4%. The lowest income people will be hit the hardest. In this analysis from the Tax Foundation, you can see how the share of tax liability went up for the top quintile, and down for all of the others under the Bush cuts.SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-17311977047353588692012-08-12T17:38:22.368-04:002012-08-12T17:38:22.368-04:00I don't understand 8. Who are the rich / the p...I don't understand 8. Who are the rich / the poor? What does it mean to benefit? Percentage of what?Xenoclesnoreply@blogger.com