Refuting the "Tax Cuts for the Rich" Canard

Writing for Investor's Business Daily, economist Thomas Sowell puts forth a brilliant three-part series of articles refuting the all-too-common line of attack from the left regarding Republican plans to give "tax cuts for the rich".

Another consequence was that people in higher-income brackets paid not only a larger total amount of taxes, but a higher percentage of all taxes, after what were called "tax cuts for the rich." It was not simply that their incomes rose, but that this was not taxable income, since the lower tax rates made it profitable to get higher returns outside of tax shelters.

The facts are unmistakably plain, for those who bother to check the facts. In 1921, when the tax rate on people making over $100,000 a year was 73%, the federal government collected a little over $700 million in income taxes, of which 30% was paid by those making over $100,000.

Revenue spiked as tax rates were slashed.