The most interesting spin I have ever seen

[ComerPerro]

Can be found here:

http://www.freerepublic.com/focus/f-news/990675/posts

As incomes of rich slid, tax take fell
By DAVID CAY JOHNSTON


New York Times


The incomes of the top 1 percent of Americans fell 18 percent in 2001, as did their income taxes, shaving $66 billion off revenues and showing how dependent the federal government has become on its wealthiest citizens.


Overall, Americans had 2.8 percent less income in 2001 than in the previous year. But federal tax revenues fell 9.4 percent because the incomes of those at the top, who pay the highest tax rates, dropped so much more than the average

Of course, the FReepers are bitching about how rough things are for the rich.
The interesting thing is they now feel vindicated. Apparently they are fine with blaming the loss in revenues on the "Clinton recession" and 9/11.
Hey, morons. Tax cuts decrease revenues!!!!!!!

And of course they are also trying to use this as proof of "tax slavery" that we impose on the wealthy. They are saying that this shows that the rich pay too much, and should have their taxes cut.

Every time I think these people are maybe just misguided and misunderstood, they prove to me that they are in reality complete morons who will believe anything you say, as long as you are conservative and are saying what they already believe.

Anyway, I just thought this was interesting. They are recognizing that revenues are down, but are still somehow unable to connect the dots.

For further "evidence", they cite that tax rates for the wealthy actually went up. Yes, that may be true. But the tax cut was not a cut in rates. It was a massive rebate on money that they never paid in the first place.

This is kind of intersting reading if you are curious about how the conservative mind works. More importantly, its essential reading if you want to see just how strong the right's propaganda machine really is.

[mhr]

1. Once a MORAN always a MORAN

eom

[rfranklin]

2. My massa is mo' better 'en yo massa!

And he whups me mo' better 'en you massa!

[maggrwaggr]

6. LOL! That's exactly it! How many of those freeper types are rich?

like NONE. The cars I see are always the dented-up looking old pieces-of-crap with the flags all over them.

Stupid idiots. They have no idea they're the laughingstock of their own party leaders, the people with the $$

[Robbien]

3. The same arguement was used

by the Republican on the Capital Gang panel I saw yesterday. Couldn't believe it.

[unblock]

4. average taxes for the top1% went up ....

a great example of how to grossly mislead with statistics.

their income went from being taxed at a marginal 39.6% top only 33%, so how did the average tax actually increase?

because so much of their income is actually taxed at only 15% (down from 20% pre-bush), the capital gains tax rate.

that means that despite the fact that they earned enough ordinary income to be well into the 39.6% bracket, they earned so much more capital gains that their average income tax was well under 33%.

so then, when their capital gains income dropped because bush killed the stock market, they still had all that ordinary income, but very little capital gains. so most of their income was taxed at 39.6%, but they no longer had all that extra income taxed at the much lower 15%. so the average went up.


so to say that cutting the tax rates had no effect is completely idiotic. leaving tax rates alone, the shift between types of income can move the average tax rate a lot, but that's independent of the marginal tax rates on either form of income. had the tax rates been left alone, more income would have been taxed at 39.6% and the average tax rates would have increased even more. of course the tax cut had an effect on revenue, and of course it benefitted the rich.


all they're saying is that bush killing the stock market hurt the rich more than the tax cuts helped them. which is what i've been saying all along.

[KittyWampus]

7. I Am Not A "Moran" By Any Stretch Of Imagination

But I would like to say that as hard as I tried to understand your post, it just wouldn't happen.

Perhaps this is a complicated subject which is difficult to boil down into easily understood analogies...

True, I am not allTHAT smart but it seems reasonable to say if I can't follow your explanation, then Morans can't

At any rate, even though I can't quite grasp the details... I do see many wealthy people where I live who are not affected by the present economy. They already spend as much money as they please and could afford to pay more in taxes easily

HOwever, perhaps many Morans don't have as close proximity to as many wealthy people...

Paul Krugman is wonderful at finding ways to describe his economic points.

[acmavm]

5. I might be interested in the "way" a conservative mind works if I'd ever

seen any evidence that it does. No sense, no logic, small intellect, just a great big dose of narcissim (sp?).