Congress returns to session next week. High on the agenda will be Democrat efforts to restore "equity" to the tax bite. And they'll open the debate with the usual canard: The Bush tax cuts favored the rich; it's time for middle-class tax relief.
But as The Wall Street Journal reports, "the richest 1 percent, 5 percent and 10 percent of the taxpayers are shouldering a larger burden of the income tax burden at the federal level than the tax estimators said they would had the tax cuts never materialized."
In real numbers, The Journal cites 2005 Treasury Department data: "The amount of tax paid by those earning more than $1 million a year increased to $236 billion in 2005, up from $132 billion in 2003, the year of the tax cut."
And for the liberal class-envy crowd, there's this: The top 1 percent of income earners who paid 19 percent of federal income taxes in 1980 paid 36 percent of all federal income taxes in 2004, The Journal notes. For the top 5 percent, the federal income tax share rose from 37 percent to 56 percent. For the top 10 percent, it went from 49 percent to 68 percent.
What's actually happened is a classic textbook tutorial. As tax rates fall, business activity increases, producing more tax revenues for government coffers.
Democrat "equity" will only raise tax rates, reduce business activity and produce less tax revenue. And that, class, is a lesson in liberal "progressivism."