Earlier this month, the IRS released tax data for the 2009 calendar year. The information is far from encouraging, and, goes a long way to explaining why President Obama is now seeking to increase taxes on the thousandaires.
In 2007, we had 18,394 tax filers who reported adjusted gross incomes of over $10 million, and they paid $111 billion in taxes. By 2009, that figure had dropped to 8,274 filers paying $54 billion.
In 2007, we had 390,000 tax filers who reported adjusted gross incomes of over $1 million, and they paid $309 billion in taxes. By 2009, that figure had dropped to 237,000 filers paying $178 billion.
This is not a good trend, particularly given our current debt and deficits.
However, even the thousandaires are vanishing. In 2007, we had 4,536,000 filers reporting more than $200,000 in adjusted gross income, but, by 2009, that figure dropped to 3,924,000, causing tax revenues to fall from $610 billion to $434 billion.
These these figures may delight those on the left who firmly believe there is a fixed “income pie”…i.e., if the rich are earning less, then the non-rich must be earning more. But, since almost 50% of Americans are paying no taxes at all, if this myth be true, and, I can assure you it isn’t, we are losing tax revenue…$364 billion, to be exact, between 2007 and 2009.
As Steve has pointed out countless times, taxing the “rich” will never balance our country’s budget. Right now, our problem in this regard is far more fundamental.
It’s the economy.
We need income tax payers, and far more “rich” ones then we currently have. No amount of food stamps, or unemployment insurance, or payroll tax cuts will get us there. This administration has to get out of the way…stop the regulatory uncertainty, stop the “tax the rich” uncertainty, and let business grow.
Anyone think that will be part of the President’s “soon to be released” plan?